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Correlation Analysis

Johnson & Johnson vs TransDigm Group Incorporated

JNJ vs TDG

+0.052

Weak positive

When one moves up, the other tends to follow.

JNJ logo

Johnson & Johnson

JNJ

Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. After restructurings in 2023-24, the drug division focuses on three main therapeutic areas: immunology, oncology, and neurology. Geographically, just over half of total revenue is generated in the United States.

Market cap 580.4B

TDG logo

TransDigm Group Incorporated

TDG

TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm organizes itself in three segments: power and control, airframes, and a small non-aviation segment, which serves mostly off-road vehicles and mining equipment. It operates as an acquisitive holding company that focuses on buying up smaller firms that make proprietary aerospace products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.

Market cap 67.2B · 16,500 employees

Apr 9, 2021 — Apr 7, 2026Daily1,254 data pointsStockStockHealthcare

Time Series

Relative Performance

Green: JNJGray: TDG36 of 1,254 points (sampled)

Who Moves First

TDG leads JNJ by 6 days

TDG tends to move before JNJ.

After testing 13 timing shifts, the strongest relationship was +0.067 (they moved in the same direction).

Do They Crash Together?

Correlation by Market Regime

How these series behave when markets are rising, falling, or diverging. A correlation that holds in drawdowns is very different from one that only works in rallies.

Both Rising

-0.479

11 periods · Return correlation when both series rose

Both Falling

+0.030

8 periods · Return correlation when both series fell

Diverging

-0.650

16 periods · Return correlation when series moved apart

R-Squared

0.3%

Share of variance in one series explained by the other.

Trend Agreement

52.6%

How often both series moved in the same direction period-to-period.

Overlap Quality

1,254

Deep shared window — 1,254 usable pairs.

Significance

n.s.

95% CI: [-0.003, 0.107]

Scatter

XY Regression

135.5140160180200220240252.64956008001,0001,2001,4001,6001,664Johnson & JohnsonTransDigm Group IncorporatedData pointsFit (r = 0.052)

Pipeline

Data quality details

Pipeline Summary

1,254 paired data points survived the daily window.

Raw input

1,254

1,254

Normalized

1,254

1,254

Prepared

1,254

1,254

Aligned

1,254

1,254

Invalid removed

0

A: 0 / B: 0

Duplicates removed

0

A: 0 / B: 0

Alignment drops

0

A: 0 / B: 0

Series A

JNJ logo

Johnson & Johnson

JNJ

Market cap 580.4B

Stock · 1,254 raw → 1,254 prepared

Series B

TDG logo

TransDigm Group Incorporated

TDG

Market cap 67.2B · 16,500 employees

Stock · 1,254 raw → 1,254 prepared

Sign agreement

100.0%

How often both values share the same sign.

Zero crossings

5

Estimated crossover points between normalized spreads.

Slope

0.8824

Linear regression slope.

Intercept

823.4954

Linear regression intercept.

Related Extremes

Highest and Lowest Correlated

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