ITW vs OFLX: Correlation
How closely do Illinois Tool Works (ITW) and Omega Flex, Inc. (OFLX) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and OFLX?
Over the past 3 years, ITW and OFLX moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 428.0 %².
Within ITW's tracked universe of 81 assets, OFLX comes in at #30 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ITW outperformed by 28.7 percentage points (+8.2% for ITW against -20.5% for OFLX). Note the risk asymmetry: OFLX runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ITW vs OFLX: side by side
| ITW (Illinois Tool Works) | OFLX (Omega Flex, Inc.) | |
|---|---|---|
| 1-year return | +8.2% | -20.5% |
| 5-year return | +36.1% | -79.8% |
| Volatility (ann.) | 19.0% | 37.6% |
| Beta vs S&P 500 | 0.64 | 0.94 |
| Max drawdown (3Y) | -20.6% | -68.3% |
| Market cap | $80.2B | $0.3B |
| P/E (trailing) | 25.8 | 23.1 |
| Dividend yield | 2.26% | 5.06% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | OFLX |
|---|---|---|
| 2022 | -8.5% | -25.6% |
| 2023 | +21.6% | -23.4% |
| 2024 | -1.0% | -38.9% |
| 2025 | -0.4% | -26.8% |
| 2026 | +15.8% | -6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and OFLX good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and OFLX?
The ITW/OFLX correlation stands at 0.60 on a 3-year window (1 year: 0.70, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is OFLX a good diversifier for ITW?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-oflx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/itw-vs-oflx/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · OFLX correlations
