TDG vs VELO: Correlation
TransDigm Group (TDG) and Velo3D, Inc. (VELO) show a negative relationship: their 3-year correlation of weekly returns is -0.19.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TDG and VELO?
On 3 years of weekly data the TDG/VELO correlation comes out at -0.19, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.06 versus -0.19 over 3 years. The 5-year figure is -0.06, and annualized covariance runs at -1208.5 %².
VELO is close to the least connected end of TDG's tracked universe, ranking #27 of 31. Correlation aside, the last 12 months split them widely, with VELO ahead by 191.0 points (-9.1% versus +181.9%). One caveat on sizing: VELO is 9.8 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.
TDG vs VELO: side by side
| TDG (TransDigm Group) | VELO (Velo3D, Inc.) | |
|---|---|---|
| 1-year return | -9.1% | +181.9% |
| 5-year return | +136.5% | -99.8% |
| Volatility (ann.) | 25.5% | 249.0% |
| Beta vs S&P 500 | 0.91 | -2.66 |
| Max drawdown (3Y) | -25.3% | -99.8% |
| Market cap | $65.6B | $0.4B |
| P/E (trailing) | 36.6 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | TDG | VELO |
|---|---|---|
| 2022 | +1.8% | -77.1% |
| 2023 | +66.6% | -77.8% |
| 2024 | +32.3% | -95.2% |
| 2025 | +12.2% | +35.7% |
| 2026 | -10.8% | -6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TDG and VELO good diversifiers for each other?
Yes. With a correlation of -0.19, TDG and VELO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between TDG and VELO?
As of 2026-08-27, the correlation of weekly returns between TDG and VELO is -0.19 over 3 years, -0.06 over 1 year and -0.06 over 5 years.
Is VELO a good diversifier for TDG?
Yes. With a correlation of -0.19, TDG and VELO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.19 mean?
A reading of -0.19 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
$ curl https://www.pairbook.io/api/v1/pairs/tdg-vs-velo.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tdg-vs-velo/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TDG correlations · VELO correlations
