SWK vs VYM: Correlation
How closely do Stanley Black & Decker (SWK) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SWK and VYM?
Across a 3-year window, the weekly returns of SWK and VYM correlate at 0.66, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Stretching to 5 years gives 0.61, with an annualized covariance of 286.8 %².
Among the 55 assets we track against SWK, VYM ranks #15 by 3-year correlation. The last year tells two different stories: SWK led by 15.9 percentage points, +37.0% for SWK against +21.1% for VYM. On a rolling one-year basis the correlation drifted between 0.55 and 0.81, a moderate band. Risk is not evenly split, since SWK carries 2.9 times the volatility of the other side.
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.
SWK vs VYM: side by side
| SWK (Stanley Black & Decker) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +37.0% | +21.1% |
| 5-year return | -39.1% | +76.6% |
| Volatility (ann.) | 35.4% | 12.3% |
| Beta vs S&P 500 | 1.19 | 0.69 |
| Max drawdown (3Y) | -48.3% | -14.5% |
| Market cap | $15.0B | – |
| P/E (trailing) | 24.4 | – |
| Dividend yield | 3.33% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Industrials | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | SWK | VYM |
|---|---|---|
| 2022 | -58.9% | -0.4% |
| 2023 | +35.6% | +6.6% |
| 2024 | -15.2% | +17.6% |
| 2025 | -3.2% | +15.4% |
| 2026 | +36.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.06% of VYM is SWK itself, so the fund partly moves with the stock by construction.
Are SWK and VYM good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SWK and VYM?
As of 2026-08-27, the correlation of weekly returns between SWK and VYM is 0.66 over 3 years, 0.67 over 1 year and 0.61 over 5 years.
Is VYM a good diversifier for SWK?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 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.
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Related comparisons
Hubs: SWK correlations · VYM correlations
