ITW vs RSP: Correlation
Measured on weekly returns over the past three years, Illinois Tool Works (ITW) and Invesco S&P 500 Equal Weight ETF (RSP) carry a correlation of 0.70, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and RSP?
Across a 3-year window, the weekly returns of ITW and RSP correlate at 0.70, strong. Lately the two have drifted apart, with the 1-year correlation at 0.54 versus 0.70 over 3 years. Stretching to 5 years gives 0.75, with an annualized covariance of 174.9 %².
Within ITW's tracked universe of 81 assets, RSP comes in at #8 by 3-year correlation. The trailing year gives RSP the advantage: +8.2% versus +19.2%, a 11.0-point spread. On a rolling one-year basis the correlation drifted between 0.56 and 0.83, a moderate band.
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 RSP: side by side
| ITW (Illinois Tool Works) | RSP (Invesco S&P 500 Equal Weight ETF) | |
|---|---|---|
| 1-year return | +8.2% | +19.2% |
| 5-year return | +36.1% | +53.9% |
| Volatility (ann.) | 19.0% | 13.2% |
| Beta vs S&P 500 | 0.64 | 0.77 |
| Max drawdown (3Y) | -20.6% | -17.8% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 2.26% | 1.49% |
| Expense ratio | – | 0.20% |
| Assets under management | – | $97.3B |
| Sector / category | Industrials | ETF · US Large Cap |
On the fund side, RSP sits in the Large Blend category at Invesco, with $97.3B under management, 505 holdings, a 0.20% expense ratio, a 1.49% trailing dividend yield.
Year-by-year returns
| Year | ITW | RSP |
|---|---|---|
| 2022 | -8.5% | -11.6% |
| 2023 | +21.6% | +13.7% |
| 2024 | -1.0% | +12.8% |
| 2025 | -0.4% | +11.2% |
| 2026 | +15.8% | +16.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.21% of RSP is ITW itself, so the fund partly moves with the stock by construction.
Are ITW and RSP good diversifiers for each other?
Only partially. A correlation of 0.70 means ITW and RSP 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 RSP?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.54 over the last year and 0.75 over 5 years.
Is RSP a good diversifier for ITW?
Only partially. A correlation of 0.70 means ITW and RSP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.70 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-rsp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-rsp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITW correlations · RSP correlations
