ITW vs TXT: Correlation
How closely do Illinois Tool Works (ITW) and Textron (TXT) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and TXT?
Across a 3-year window, the weekly returns of ITW and TXT correlate at 0.56, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.44 versus 0.56 over 3 years. Stretching to 5 years gives 0.59, with an annualized covariance of 270.9 %².
By 3-year correlation, TXT places #41 of the 81 assets tracked against ITW. The trailing year gives ITW the advantage: +8.2% versus +0.7%, a 7.5-point spread. The rolling one-year correlation moved between 0.41 and 0.73 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 TXT: side by side
| ITW (Illinois Tool Works) | TXT (Textron) | |
|---|---|---|
| 1-year return | +8.2% | +0.7% |
| 5-year return | +36.1% | +15.1% |
| Volatility (ann.) | 19.0% | 25.4% |
| Beta vs S&P 500 | 0.64 | 0.89 |
| Max drawdown (3Y) | -20.6% | -37.3% |
| Market cap | $80.2B | $14.2B |
| P/E (trailing) | 25.8 | 15.7 |
| Dividend yield | 2.26% | 0.10% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | TXT |
|---|---|---|
| 2022 | -8.5% | -8.2% |
| 2023 | +21.6% | +13.7% |
| 2024 | -1.0% | -4.8% |
| 2025 | -0.4% | +14.1% |
| 2026 | +15.8% | -5.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and TXT good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and TXT?
As of 2026-08-27, the correlation of weekly returns between ITW and TXT is 0.56 over 3 years, 0.44 over 1 year and 0.59 over 5 years.
Is TXT a good diversifier for ITW?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
A reading of 0.56 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-txt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/itw-vs-txt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · TXT correlations
