TT vs VOO: Correlation
Trane Technologies (TT) and Vanguard S&P 500 ETF (VOO) 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 TT and VOO?
On 3 years of weekly data the TT/VOO correlation comes out at 0.62, strong. The past 12 months show a weaker link (0.37) than the 3-year average (0.62). The 5-year figure is 0.65, and annualized covariance runs at 247.8 %².
Within TT's tracked universe of 37 assets, VOO comes in at #13 by 3-year correlation. Over the last 12 months VOO came out ahead by 12.8 percentage points (+7.8% against +20.6%). The rolling one-year correlation moved between 0.35 and 0.75 over the past three years, a moderate range. Note the risk asymmetry: TT runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
TT vs VOO: side by side
| TT (Trane Technologies) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +7.8% | +20.6% |
| 5-year return | +141.4% | +83.0% |
| Volatility (ann.) | 27.8% | 14.4% |
| Beta vs S&P 500 | 1.19 | 0.99 |
| Max drawdown (3Y) | -24.4% | -18.7% |
| Market cap | $100.0B | – |
| P/E (trailing) | 33.8 | – |
| Dividend yield | 0.86% | 1.07% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $1,686.9B |
| Sector / category | Industrials | ETF · US Large Cap |
VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Year-by-year returns
| Year | TT | VOO |
|---|---|---|
| 2022 | -15.3% | -18.2% |
| 2023 | +47.4% | +26.3% |
| 2024 | +53.0% | +25.0% |
| 2025 | +6.1% | +17.8% |
| 2026 | +17.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TT represents 0.16% of VOO's portfolio, so part of any move in VOO is TT itself, and the correlation between them is partly mechanical.
Are TT and VOO good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TT and VOO?
The TT/VOO correlation stands at 0.62 on a 3-year window (1 year: 0.37, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is VOO a good diversifier for TT?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: TT correlations · VOO correlations
