QUAL vs TDG: Correlation
iShares MSCI USA Quality Factor ETF (QUAL) and TransDigm Group (TDG) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and TDG?
Across a 3-year window, the weekly returns of QUAL and TDG correlate at 0.54, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.39 versus 0.54 over 3 years. Stretching to 5 years gives 0.61, with an annualized covariance of 191.4 %².
Within QUAL's tracked universe of 106 assets, TDG comes in at #61 by 3-year correlation. The last year tells two different stories: QUAL led by 28.8 percentage points, +19.7% for QUAL against -9.1% for TDG. The rolling one-year correlation moved between 0.30 and 0.75 over the past three years, a moderate range. One caveat on sizing: TDG is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
QUAL vs TDG: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | TDG (TransDigm Group) | |
|---|---|---|
| 1-year return | +19.7% | -9.1% |
| 5-year return | +68.0% | +136.5% |
| Volatility (ann.) | 14.0% | 25.5% |
| Beta vs S&P 500 | 0.93 | 0.91 |
| Max drawdown (3Y) | -18.0% | -25.3% |
| Market cap | – | $65.6B |
| P/E (trailing) | – | 36.6 |
| Dividend yield | 0.86% | 0.00% |
| Expense ratio | 0.15% | – |
| Assets under management | $46.5B | – |
| Sector / category | ETF · US Style | Industrials |
QUAL is a Large Blend fund from iShares: $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | QUAL | TDG |
|---|---|---|
| 2022 | -20.5% | +1.8% |
| 2023 | +30.9% | +66.6% |
| 2024 | +22.3% | +32.3% |
| 2025 | +12.7% | +12.2% |
| 2026 | +13.5% | -10.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL 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 QUAL and TDG?
The QUAL/TDG correlation stands at 0.54 on a 3-year window (1 year: 0.39, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is TDG a good diversifier for QUAL?
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?
On the −1 to +1 scale, 0.54 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qual-vs-tdg.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: QUAL correlations · TDG correlations
