HEI vs TDG: Correlation
How closely do Heico Corporation (HEI) and TransDigm Group (TDG) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HEI and TDG?
Over the past 3 years, HEI and TDG moved with a correlation of 0.54, which is moderate. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 383.0 %².
Few assets follow HEI as closely as TDG, which ranks #2 of 12 tracked partners. The last year tells two different stories: HEI led by 15.6 percentage points, +6.5% for HEI against -9.1% for TDG.
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.
HEI vs TDG: side by side
| HEI (Heico Corporation) | TDG (TransDigm Group) | |
|---|---|---|
| 1-year return | +6.5% | -9.1% |
| 5-year return | +169.4% | +136.5% |
| Volatility (ann.) | 27.5% | 25.5% |
| Beta vs S&P 500 | 0.85 | 0.91 |
| Max drawdown (3Y) | -27.1% | -25.3% |
| Market cap | – | $65.6B |
| P/E (trailing) | 57.8 | 36.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | HEI | TDG |
|---|---|---|
| 2022 | +6.7% | +1.8% |
| 2023 | +16.6% | +66.6% |
| 2024 | +33.1% | +32.3% |
| 2025 | +36.2% | +12.2% |
| 2026 | +4.2% | -10.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HEI and TDG good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HEI and TDG?
As of 2026-08-27, the correlation of weekly returns between HEI and TDG is 0.54 over 3 years, 0.56 over 1 year and 0.63 over 5 years.
Is TDG a good diversifier for HEI?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 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.
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Related comparisons
Hubs: HEI correlations · TDG correlations
