DRS vs KTOS: Correlation
Measured on weekly returns over the past three years, Leonardo DRS, Inc. (DRS) and Kratos Defense & Security Solutions, Inc. (KTOS) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DRS and KTOS?
Across a 3-year window, the weekly returns of DRS and KTOS correlate at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Stretching to 5 years gives 0.47, with an annualized covariance of 1320.5 %².
Few assets follow DRS as closely as KTOS, which ranks #1 of 14 tracked partners. On 12-month performance DRS holds a 14.4-point edge, -6.6% against -21.0%. One caveat on sizing: KTOS is 1.6 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.
DRS vs KTOS: side by side
| DRS (Leonardo DRS, Inc.) | KTOS (Kratos Defense & Security Solutions, Inc.) | |
|---|---|---|
| 1-year return | -6.6% | -21.0% |
| 5-year return | +245.4% | +117.5% |
| Volatility (ann.) | 38.1% | 59.9% |
| Beta vs S&P 500 | 0.96 | 1.62 |
| Max drawdown (3Y) | -32.5% | -66.4% |
| Market cap | $10.4B | $10.1B |
| P/E (trailing) | 32.4 | 315.8 |
| Dividend yield | 0.93% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DRS | KTOS |
|---|---|---|
| 2022 | +35.7% | -46.8% |
| 2023 | +56.8% | +96.6% |
| 2024 | +61.2% | +30.0% |
| 2025 | +6.6% | +187.8% |
| 2026 | +14.9% | -29.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DRS and KTOS good diversifiers for each other?
Only partially. A correlation of 0.58 means DRS and KTOS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DRS and KTOS?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.56 over the last year and 0.47 over 5 years.
Is KTOS a good diversifier for DRS?
Only partially. A correlation of 0.58 means DRS and KTOS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
A reading of 0.58 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/drs-vs-ktos.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/drs-vs-ktos/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DRS correlations · KTOS correlations
