KRT vs WTS: Correlation
Karat Packaging Inc. (KRT) and Watts Water Technologies, Inc. (WTS) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KRT and WTS?
Across a 3-year window, the weekly returns of KRT and WTS correlate at 0.58, moderate. Recent behaviour matches the longer record: 0.49 over 1 year against 0.58 over 3. Stretching to 5 years gives 0.36, with an annualized covariance of 575.5 %².
Few assets follow KRT as closely as WTS, which ranks #3 of 12 tracked partners. The last year tells two different stories: KRT led by 78.0 percentage points, +109.9% for KRT against +31.9% for WTS. One caveat on sizing: KRT is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
KRT vs WTS: side by side
| KRT (Karat Packaging Inc.) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | +109.9% | +31.9% |
| 5-year return | +172.9% | +125.4% |
| Volatility (ann.) | 40.5% | 24.6% |
| Beta vs S&P 500 | 1.09 | 0.89 |
| Max drawdown (3Y) | -34.0% | -19.5% |
| Market cap | $1.0B | $12.4B |
| P/E (trailing) | 19.7 | 32.5 |
| Dividend yield | 3.65% | 0.58% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KRT | WTS |
|---|---|---|
| 2022 | -27.1% | -24.1% |
| 2023 | +82.2% | +43.6% |
| 2024 | +28.8% | -1.6% |
| 2025 | -20.1% | +36.8% |
| 2026 | +130.6% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KRT and WTS good diversifiers for each other?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between KRT and WTS?
As of 2026-08-27, the correlation of weekly returns between KRT and WTS is 0.58 over 3 years, 0.49 over 1 year and 0.36 over 5 years.
Is WTS a good diversifier for KRT?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.58 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: KRT correlations · WTS correlations
