ITW vs OTIS: Correlation
How closely do Illinois Tool Works (ITW) and Otis Worldwide (OTIS) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and OTIS?
Across a 3-year window, the weekly returns of ITW and OTIS correlate at 0.55, moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 200.9 %².
Within ITW's tracked universe of 81 assets, OTIS comes in at #43 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ITW ahead by 25.0 points (+8.2% versus -16.8%). The rolling one-year correlation moved between 0.41 and 0.85 over the past three years, a moderate range.
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 OTIS: side by side
| ITW (Illinois Tool Works) | OTIS (Otis Worldwide) | |
|---|---|---|
| 1-year return | +8.2% | -16.8% |
| 5-year return | +36.1% | -15.9% |
| Volatility (ann.) | 19.0% | 19.1% |
| Beta vs S&P 500 | 0.64 | 0.59 |
| Max drawdown (3Y) | -20.6% | -32.4% |
| Market cap | $80.2B | $27.2B |
| P/E (trailing) | 25.8 | 18.4 |
| Dividend yield | 2.26% | 2.35% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | OTIS |
|---|---|---|
| 2022 | -8.5% | -8.8% |
| 2023 | +21.6% | +16.0% |
| 2024 | -1.0% | +5.2% |
| 2025 | -0.4% | -4.0% |
| 2026 | +15.8% | -16.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and OTIS good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and OTIS?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.55 over the last year and 0.68 over 5 years.
Is OTIS a good diversifier for ITW?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: ITW correlations · OTIS correlations
