GD vs LMT: Correlation
How closely do General Dynamics (GD) and Lockheed Martin (LMT) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GD and LMT?
Across a 3-year window, the weekly returns of GD and LMT correlate at 0.48, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.48 over 3. Stretching to 5 years gives 0.60, with an annualized covariance of 264.5 %².
Among the 30 assets we track against GD, LMT ranks #11 by 3-year correlation. Over the last 12 months LMT came out ahead by 9.1 percentage points (+18.8% against +27.9%). This link changes with the market regime, having swung between -0.02 and 0.76 on a rolling one-year basis.
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.
GD vs LMT: side by side
| GD (General Dynamics) | LMT (Lockheed Martin) | |
|---|---|---|
| 1-year return | +18.8% | +27.9% |
| 5-year return | +111.9% | +78.9% |
| Volatility (ann.) | 21.1% | 26.0% |
| Beta vs S&P 500 | 0.52 | 0.20 |
| Max drawdown (3Y) | -22.5% | -31.8% |
| Market cap | $102.8B | $130.6B |
| P/E (trailing) | 23.3 | 20.9 |
| Dividend yield | 1.62% | 2.41% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | GD | LMT |
|---|---|---|
| 2022 | +21.7% | +40.5% |
| 2023 | +7.1% | -4.3% |
| 2024 | +3.5% | +10.0% |
| 2025 | +30.4% | +2.5% |
| 2026 | +14.4% | +18.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GD and LMT good diversifiers for each other?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between GD and LMT?
The GD/LMT correlation stands at 0.48 on a 3-year window (1 year: 0.47, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is LMT a good diversifier for GD?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.48 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/gd-vs-lmt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/gd-vs-lmt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: GD correlations · LMT correlations
