LECO vs NDSN: Correlation
How closely do Lincoln Electric Holdings, Inc. (LECO) and Nordson Corporation (NDSN) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LECO and NDSN?
Over the past 3 years, LECO and NDSN moved with a correlation of 0.69, which is strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.69 over 3. Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 474.1 %².
In LECO's tracked universe of 18 assets, NDSN sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months NDSN outperformed by 30.1 percentage points (+18.4% for LECO against +48.5% for NDSN).
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 NDSN: side by side
| LECO (Lincoln Electric Holdings, Inc.) | NDSN (Nordson Corporation) | |
|---|---|---|
| 1-year return | +18.4% | +48.5% |
| 5-year return | +120.5% | +46.5% |
| Volatility (ann.) | 27.9% | 24.7% |
| Beta vs S&P 500 | 1.03 | 0.97 |
| Max drawdown (3Y) | -34.3% | -39.1% |
| Market cap | $15.8B | $18.4B |
| P/E (trailing) | 29.0 | 33.5 |
| Dividend yield | 1.08% | 0.98% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | LECO | NDSN |
|---|---|---|
| 2022 | +5.4% | -5.9% |
| 2023 | +52.6% | +12.4% |
| 2024 | -12.6% | -20.1% |
| 2025 | +29.6% | +17.0% |
| 2026 | +21.7% | +38.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LECO and NDSN good diversifiers for each other?
Only partially. A correlation of 0.69 means LECO and NDSN 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 LECO and NDSN?
As of 2026-08-27, the correlation of weekly returns between LECO and NDSN is 0.69 over 3 years, 0.63 over 1 year and 0.68 over 5 years.
Is NDSN a good diversifier for LECO?
Only partially. A correlation of 0.69 means LECO and NDSN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 mean?
On the −1 to +1 scale, 0.69 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-ndsn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/leco-vs-ndsn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LECO correlations · NDSN correlations
