RTX vs TDG: Correlation
RTX Corporation (RTX) and TransDigm Group (TDG) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RTX and TDG?
On 3 years of weekly data the RTX/TDG correlation comes out at 0.49, moderate. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. The 5-year figure is 0.52, and annualized covariance runs at 315.7 %².
Among the 27 assets we track against RTX, TDG ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months RTX outperformed by 43.8 percentage points (+34.7% for RTX against -9.1% for TDG). The relationship is regime-dependent: the rolling one-year correlation swung between 0.16 and 0.66 over the past three years, so this pair behaves very differently depending on the market environment.
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.
RTX vs TDG: side by side
| RTX (RTX Corporation) | TDG (TransDigm Group) | |
|---|---|---|
| 1-year return | +34.7% | -9.1% |
| 5-year return | +178.4% | +136.5% |
| Volatility (ann.) | 25.1% | 25.5% |
| Beta vs S&P 500 | 0.57 | 0.91 |
| Max drawdown (3Y) | -19.7% | -25.3% |
| Market cap | $285.8B | $65.6B |
| P/E (trailing) | 37.3 | 36.6 |
| Dividend yield | 1.31% | 0.00% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | RTX | TDG |
|---|---|---|
| 2022 | +20.0% | +1.8% |
| 2023 | -14.4% | +66.6% |
| 2024 | +40.8% | +32.3% |
| 2025 | +61.4% | +12.2% |
| 2026 | +16.9% | -10.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RTX and TDG good diversifiers for each other?
Reasonably. At 0.49, RTX and TDG keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RTX and TDG?
The RTX/TDG correlation stands at 0.49 on a 3-year window (1 year: 0.59, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is TDG a good diversifier for RTX?
Reasonably. At 0.49, RTX and TDG keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 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: RTX correlations · TDG correlations
