ITW vs SWK: Correlation
Illinois Tool Works (ITW) and Stanley Black & Decker (SWK) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and SWK?
Across a 3-year window, the weekly returns of ITW and SWK correlate at 0.69, strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.69 over 3. Stretching to 5 years gives 0.64, with an annualized covariance of 463.7 %².
Among the 81 assets we track against ITW, SWK ranks #13 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SWK ahead by 28.8 points (+8.2% versus +37.0%). On a rolling one-year basis the correlation drifted between 0.51 and 0.82, a moderate band. Note the risk asymmetry: SWK runs 1.9 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 SWK: side by side
| ITW (Illinois Tool Works) | SWK (Stanley Black & Decker) | |
|---|---|---|
| 1-year return | +8.2% | +37.0% |
| 5-year return | +36.1% | -39.1% |
| Volatility (ann.) | 19.0% | 35.4% |
| Beta vs S&P 500 | 0.64 | 1.19 |
| Max drawdown (3Y) | -20.6% | -48.3% |
| Market cap | $80.2B | $15.0B |
| P/E (trailing) | 25.8 | 24.4 |
| Dividend yield | 2.26% | 3.33% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | SWK |
|---|---|---|
| 2022 | -8.5% | -58.9% |
| 2023 | +21.6% | +35.6% |
| 2024 | -1.0% | -15.2% |
| 2025 | -0.4% | -3.2% |
| 2026 | +15.8% | +36.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and SWK good diversifiers for each other?
Only partially. A correlation of 0.69 means ITW and SWK 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 SWK?
The ITW/SWK correlation stands at 0.69 on a 3-year window (1 year: 0.70, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is SWK a good diversifier for ITW?
Only partially. A correlation of 0.69 means ITW and SWK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 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-swk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/itw-vs-swk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · SWK correlations
