LECO vs MSM: Correlation
Lincoln Electric Holdings, Inc. (LECO) and MSC Industrial Direct Company, Inc. (MSM) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LECO and MSM?
Across a 3-year window, the weekly returns of LECO and MSM correlate at 0.62, strong. The link has loosened recently: the 1-year correlation (0.47) runs below the 3-year figure (0.62). Stretching to 5 years gives 0.63, with an annualized covariance of 439.7 %².
By 3-year correlation, MSM places #10 of the 18 assets tracked against LECO. The last year tells two different stories: MSM led by 19.7 percentage points, +18.4% for LECO against +38.1% for MSM.
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.
LECO vs MSM: side by side
| LECO (Lincoln Electric Holdings, Inc.) | MSM (MSC Industrial Direct Company, Inc.) | |
|---|---|---|
| 1-year return | +18.4% | +38.1% |
| 5-year return | +120.5% | +73.8% |
| Volatility (ann.) | 27.9% | 25.3% |
| Beta vs S&P 500 | 1.03 | 0.78 |
| Max drawdown (3Y) | -34.3% | -29.3% |
| Market cap | $15.8B | – |
| P/E (trailing) | 29.0 | 29.6 |
| Dividend yield | 1.08% | 2.84% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LECO | MSM |
|---|---|---|
| 2022 | +5.4% | +0.9% |
| 2023 | +52.6% | +28.5% |
| 2024 | -12.6% | -23.4% |
| 2025 | +29.6% | +17.4% |
| 2026 | +21.7% | +49.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LECO and MSM good diversifiers for each other?
To a limited degree. At 0.62 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 LECO and MSM?
As of 2026-08-27, the correlation of weekly returns between LECO and MSM is 0.62 over 3 years, 0.47 over 1 year and 0.63 over 5 years.
Is MSM a good diversifier for LECO?
To a limited degree. At 0.62 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 0.62 mean?
On the −1 to +1 scale, 0.62 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/leco-vs-msm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/leco-vs-msm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LECO correlations · MSM correlations
