ITW vs UNP: Correlation
Illinois Tool Works (ITW) and Union Pacific Corporation (UNP) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and UNP?
Across a 3-year window, the weekly returns of ITW and UNP correlate at 0.56, moderate. The past 12 months show a weaker link (0.43) than the 3-year average (0.56). Stretching to 5 years gives 0.56, with an annualized covariance of 220.7 %².
By 3-year correlation, UNP places #42 of the 81 assets tracked against ITW. Their recent paths diverged sharply: over the last 12 months UNP outperformed by 34.2 percentage points (+8.2% for ITW against +42.4% for UNP). The rolling one-year correlation moved between 0.46 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 UNP: side by side
| ITW (Illinois Tool Works) | UNP (Union Pacific Corporation) | |
|---|---|---|
| 1-year return | +8.2% | +42.4% |
| 5-year return | +36.1% | +56.5% |
| Volatility (ann.) | 19.0% | 20.6% |
| Beta vs S&P 500 | 0.64 | 0.56 |
| Max drawdown (3Y) | -20.6% | -17.8% |
| Market cap | $80.2B | $182.8B |
| P/E (trailing) | 25.8 | 25.1 |
| Dividend yield | 2.26% | 1.78% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | UNP |
|---|---|---|
| 2022 | -8.5% | -15.9% |
| 2023 | +21.6% | +21.6% |
| 2024 | -1.0% | -5.1% |
| 2025 | -0.4% | +3.9% |
| 2026 | +15.8% | +34.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and UNP good diversifiers for each other?
Only partially. A correlation of 0.56 means ITW and UNP 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 UNP?
As of 2026-08-27, the correlation of weekly returns between ITW and UNP is 0.56 over 3 years, 0.43 over 1 year and 0.56 over 5 years.
Is UNP a good diversifier for ITW?
Only partially. A correlation of 0.56 means ITW and UNP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 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-unp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-unp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITW correlations · UNP correlations
