KMI vs WMB: Correlation
Measured on weekly returns over the past three years, Kinder Morgan (KMI) and Williams Companies (WMB) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMI and WMB?
Over the past 3 years, KMI and WMB moved with a correlation of 0.87, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.91 over 1 year against 0.87 over 3. Over 5 years the correlation is 0.88, and the annualized covariance of weekly returns is 460.2 %².
Few assets follow KMI as closely as WMB, which ranks #1 of 33 tracked partners. The trailing year gives WMB the advantage: +22.3% versus +33.1%, a 10.8-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.75 through 0.92.
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.
KMI vs WMB: side by side
| KMI (Kinder Morgan) | WMB (Williams Companies) | |
|---|---|---|
| 1-year return | +22.3% | +33.1% |
| 5-year return | +153.0% | +279.9% |
| Volatility (ann.) | 22.1% | 24.0% |
| Beta vs S&P 500 | 0.29 | 0.34 |
| Max drawdown (3Y) | -18.4% | -12.4% |
| Market cap | $70.2B | $90.7B |
| P/E (trailing) | 20.6 | 29.7 |
| Dividend yield | 3.69% | 2.76% |
| Sector / category | Energy | Energy |
Year-by-year returns
| Year | KMI | WMB |
|---|---|---|
| 2022 | +21.2% | +32.8% |
| 2023 | +4.1% | +11.9% |
| 2024 | +64.4% | +62.3% |
| 2025 | +4.8% | +14.9% |
| 2026 | +18.0% | +25.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMI and WMB good diversifiers for each other?
No. With a correlation of 0.87, KMI and WMB move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between KMI and WMB?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.91 over the last year and 0.88 over 5 years.
Is WMB a good diversifier for KMI?
No. With a correlation of 0.87, KMI and WMB move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.87 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.
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Related comparisons
Hubs: KMI correlations · WMB correlations
