ITW vs UPS: Correlation
Illinois Tool Works (ITW) and United Parcel Service (UPS) show a moderate relationship: their 3-year correlation of weekly returns is 0.50.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and UPS?
Across a 3-year window, the weekly returns of ITW and UPS correlate at 0.50, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives 0.53, with an annualized covariance of 280.1 %².
Within ITW's tracked universe of 81 assets, UPS comes in at #53 by 3-year correlation. The last year tells two different stories: UPS led by 20.0 percentage points, +8.2% for ITW against +28.2% for UPS. On a rolling one-year basis the correlation drifted between 0.32 and 0.68, a moderate band. Note the risk asymmetry: UPS runs 1.5 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 UPS: side by side
| ITW (Illinois Tool Works) | UPS (United Parcel Service) | |
|---|---|---|
| 1-year return | +8.2% | +28.2% |
| 5-year return | +36.1% | -31.0% |
| Volatility (ann.) | 19.0% | 29.4% |
| Beta vs S&P 500 | 0.64 | 0.81 |
| Max drawdown (3Y) | -20.6% | -46.5% |
| Market cap | $80.2B | $89.9B |
| P/E (trailing) | 25.8 | 19.6 |
| Dividend yield | 2.26% | 6.21% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | UPS |
|---|---|---|
| 2022 | -8.5% | -16.2% |
| 2023 | +21.6% | -6.0% |
| 2024 | -1.0% | -15.9% |
| 2025 | -0.4% | -15.9% |
| 2026 | +15.8% | +11.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and UPS good diversifiers for each other?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ITW and UPS?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.47 over the last year and 0.53 over 5 years.
Is UPS a good diversifier for ITW?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.50 mean?
A reading of 0.50 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-ups.json
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Related comparisons
Hubs: ITW correlations · UPS correlations
