ITW vs PCAR: Correlation
Measured on weekly returns over the past three years, Illinois Tool Works (ITW) and Paccar (PCAR) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and PCAR?
On 3 years of weekly data the ITW/PCAR correlation comes out at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. The 5-year figure is 0.63, and annualized covariance runs at 265.5 %².
Within ITW's tracked universe of 81 assets, PCAR comes in at #34 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PCAR ahead by 19.6 points (+8.2% versus +27.8%). The rolling one-year correlation moved between 0.35 and 0.74 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 PCAR: side by side
| ITW (Illinois Tool Works) | PCAR (Paccar) | |
|---|---|---|
| 1-year return | +8.2% | +27.8% |
| 5-year return | +36.1% | +177.9% |
| Volatility (ann.) | 19.0% | 24.1% |
| Beta vs S&P 500 | 0.64 | 0.74 |
| Max drawdown (3Y) | -20.6% | -27.7% |
| Market cap | $80.2B | $66.6B |
| P/E (trailing) | 25.8 | 26.6 |
| Dividend yield | 2.26% | 1.04% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | PCAR |
|---|---|---|
| 2022 | -8.5% | +17.0% |
| 2023 | +21.6% | +55.0% |
| 2024 | -1.0% | +10.8% |
| 2025 | -0.4% | +8.0% |
| 2026 | +15.8% | +16.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and PCAR good diversifiers for each other?
Only partially. A correlation of 0.58 means ITW and PCAR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ITW and PCAR?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.55 over the last year and 0.63 over 5 years.
Is PCAR a good diversifier for ITW?
Only partially. A correlation of 0.58 means ITW and PCAR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 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-pcar.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/itw-vs-pcar/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · PCAR correlations
