HWM vs TDG: Correlation
How closely do Howmet Aerospace (HWM) and TransDigm Group (TDG) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HWM and TDG?
Over the past 3 years, HWM and TDG moved with a correlation of 0.50, which is moderate. The link has loosened recently: the 1-year correlation (0.35) runs below the 3-year figure (0.50). Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 414.2 %².
By 3-year correlation, TDG places #22 of the 35 assets tracked against HWM. Their recent paths diverged sharply: over the last 12 months HWM outperformed by 61.8 percentage points (+52.7% for HWM against -9.1% for TDG). The rolling one-year correlation moved between 0.30 and 0.76 over the past three years, a moderate range.
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.
HWM vs TDG: side by side
| HWM (Howmet Aerospace) | TDG (TransDigm Group) | |
|---|---|---|
| 1-year return | +52.7% | -9.1% |
| 5-year return | +754.4% | +136.5% |
| Volatility (ann.) | 32.1% | 25.5% |
| Beta vs S&P 500 | 1.24 | 0.91 |
| Max drawdown (3Y) | -19.4% | -25.3% |
| Market cap | $106.7B | $65.6B |
| P/E (trailing) | 58.2 | 36.6 |
| Dividend yield | 0.18% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | HWM | TDG |
|---|---|---|
| 2022 | +24.2% | +1.8% |
| 2023 | +37.8% | +66.6% |
| 2024 | +102.7% | +32.3% |
| 2025 | +88.0% | +12.2% |
| 2026 | +30.7% | -10.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HWM and TDG good diversifiers for each other?
To a limited degree. At 0.50 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 HWM and TDG?
The HWM/TDG correlation stands at 0.50 on a 3-year window (1 year: 0.35, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is TDG a good diversifier for HWM?
To a limited degree. At 0.50 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 0.50 mean?
A reading of 0.50 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
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Related comparisons
Hubs: HWM correlations · TDG correlations
