WTS vs ZWS: Correlation
Measured on weekly returns over the past three years, Watts Water Technologies, Inc. (WTS) and Zurn Elkay Water Solutions Corporation (ZWS) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WTS and ZWS?
Across a 3-year window, the weekly returns of WTS and ZWS correlate at 0.62, strong. The link has loosened recently: the 1-year correlation (0.51) runs below the 3-year figure (0.62). Stretching to 5 years gives 0.57, with an annualized covariance of 421.3 %².
Within WTS's tracked universe of 24 assets, ZWS comes in at #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months WTS outperformed by 26.6 percentage points (+31.9% for WTS against +5.3% for ZWS).
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.
WTS vs ZWS: side by side
| WTS (Watts Water Technologies, Inc.) | ZWS (Zurn Elkay Water Solutions Corporation) | |
|---|---|---|
| 1-year return | +31.9% | +5.3% |
| 5-year return | +125.4% | +71.6% |
| Volatility (ann.) | 24.6% | 27.7% |
| Beta vs S&P 500 | 0.89 | 0.89 |
| Max drawdown (3Y) | -19.5% | -30.2% |
| Market cap | $12.4B | $8.1B |
| P/E (trailing) | 32.5 | 30.5 |
| Dividend yield | 0.58% | 0.85% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | WTS | ZWS |
|---|---|---|
| 2022 | -24.1% | -41.5% |
| 2023 | +43.6% | +40.6% |
| 2024 | -1.6% | +28.1% |
| 2025 | +36.8% | +25.8% |
| 2026 | +35.4% | +5.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are WTS and ZWS good diversifiers for each other?
Only partially. A correlation of 0.62 means WTS and ZWS 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 WTS and ZWS?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.51 over the last year and 0.57 over 5 years.
Is ZWS a good diversifier for WTS?
Only partially. A correlation of 0.62 means WTS and ZWS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/wts-vs-zws.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wts-vs-zws/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: WTS correlations · ZWS correlations
