AVAV vs KTOS: Correlation
How closely do AeroVironment, Inc. (AVAV) and Kratos Defense & Security Solutions, Inc. (KTOS) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AVAV and KTOS?
Across a 3-year window, the weekly returns of AVAV and KTOS correlate at 0.65, strong. Lately the two have moved closer together, with the 1-year correlation at 0.87 versus 0.65 over 3 years. Stretching to 5 years gives 0.63, with an annualized covariance of 2856.6 %².
KTOS is one of the assets that tracks AVAV most closely: it ranks #1 out of the 13 assets we track against AVAV. Correlation aside, the last 12 months split them widely, with KTOS ahead by 17.5 points (-38.5% versus -21.0%).
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.
AVAV vs KTOS: side by side
| AVAV (AeroVironment, Inc.) | KTOS (Kratos Defense & Security Solutions, Inc.) | |
|---|---|---|
| 1-year return | -38.5% | -21.0% |
| 5-year return | +48.2% | +117.5% |
| Volatility (ann.) | 73.1% | 59.9% |
| Beta vs S&P 500 | 1.82 | 1.62 |
| Max drawdown (3Y) | -66.6% | -66.4% |
| Market cap | $7.7B | $10.1B |
| P/E (trailing) | – | 315.8 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AVAV | KTOS |
|---|---|---|
| 2022 | +38.1% | -46.8% |
| 2023 | +47.1% | +96.6% |
| 2024 | +22.1% | +30.0% |
| 2025 | +57.2% | +187.8% |
| 2026 | -37.0% | -29.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AVAV and KTOS good diversifiers for each other?
To a limited degree. At 0.65 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 AVAV and KTOS?
As of 2026-08-27, the correlation of weekly returns between AVAV and KTOS is 0.65 over 3 years, 0.87 over 1 year and 0.63 over 5 years.
Is KTOS a good diversifier for AVAV?
To a limited degree. At 0.65 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 0.65 mean?
On the −1 to +1 scale, 0.65 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/avav-vs-ktos.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/avav-vs-ktos/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AVAV correlations · KTOS correlations
