LII vs WSO: Correlation
Lennox International (LII) and Watsco, Inc. (WSO) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LII and WSO?
Over the past 3 years, LII and WSO moved with a correlation of 0.73, which is strong. Little has changed lately, as the 1-year reading of 0.76 lands near the 3-year figure. Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 739.8 %².
Few assets follow LII as closely as WSO, which ranks #1 of 37 tracked partners. Over the last 12 months WSO came out ahead by 9.5 percentage points (-30.3% against -20.8%).
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.
LII vs WSO: side by side
| LII (Lennox International) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | -30.3% | -20.8% |
| 5-year return | +23.7% | +28.2% |
| Volatility (ann.) | 32.0% | 31.9% |
| Beta vs S&P 500 | 0.96 | 1.05 |
| Max drawdown (3Y) | -41.7% | -44.1% |
| Market cap | $13.5B | $12.9B |
| P/E (trailing) | 17.5 | 27.0 |
| Dividend yield | 1.34% | 3.91% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | LII | WSO |
|---|---|---|
| 2022 | -24.9% | -17.7% |
| 2023 | +89.5% | +77.0% |
| 2024 | +37.3% | +13.2% |
| 2025 | -19.5% | -27.0% |
| 2026 | -19.0% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LII and WSO good diversifiers for each other?
Only partially. A correlation of 0.73 means LII and WSO 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 LII and WSO?
As of 2026-08-27, the correlation of weekly returns between LII and WSO is 0.73 over 3 years, 0.76 over 1 year and 0.76 over 5 years.
Is WSO a good diversifier for LII?
Only partially. A correlation of 0.73 means LII and WSO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 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/lii-vs-wso.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lii-vs-wso/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LII correlations · WSO correlations
