TT vs WSO: Correlation
Measured on weekly returns over the past three years, Trane Technologies (TT) and Watsco, Inc. (WSO) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TT and WSO?
Over the past 3 years, TT and WSO moved with a correlation of 0.61, which is strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 540.1 %².
Within TT's tracked universe of 37 assets, WSO comes in at #16 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TT ahead by 28.6 points (+7.8% versus -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.
TT vs WSO: side by side
| TT (Trane Technologies) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | +7.8% | -20.8% |
| 5-year return | +141.4% | +28.2% |
| Volatility (ann.) | 27.8% | 31.9% |
| Beta vs S&P 500 | 1.19 | 1.05 |
| Max drawdown (3Y) | -24.4% | -44.1% |
| Market cap | $100.0B | $12.9B |
| P/E (trailing) | 33.8 | 27.0 |
| Dividend yield | 0.86% | 3.91% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | TT | WSO |
|---|---|---|
| 2022 | -15.3% | -17.7% |
| 2023 | +47.4% | +77.0% |
| 2024 | +53.0% | +13.2% |
| 2025 | +6.1% | -27.0% |
| 2026 | +17.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TT and WSO good diversifiers for each other?
To a limited degree. At 0.61 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 TT and WSO?
As of 2026-08-27, the correlation of weekly returns between TT and WSO is 0.61 over 3 years, 0.58 over 1 year and 0.65 over 5 years.
Is WSO a good diversifier for TT?
To a limited degree. At 0.61 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 0.61 mean?
A reading of 0.61 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tt-vs-wso.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/tt-vs-wso/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TT correlations · WSO correlations
