KMX vs LAD: Correlation
How closely do CarMax Inc (KMX) and Lithia Motors, Inc. (LAD) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMX and LAD?
Across a 3-year window, the weekly returns of KMX and LAD correlate at 0.54, moderate. Little has changed lately, as the 1-year reading of 0.52 lands near the 3-year figure. Stretching to 5 years gives 0.61, with an annualized covariance of 805.7 %².
In KMX's tracked universe of 11 assets, LAD sits right near the top at #1. On 12-month performance LAD holds a 9.1-point edge, +0.9% against +10.0%.
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.
KMX vs LAD: side by side
| KMX (CarMax Inc) | LAD (Lithia Motors, Inc.) | |
|---|---|---|
| 1-year return | +0.9% | +10.0% |
| 5-year return | -50.5% | +17.3% |
| Volatility (ann.) | 41.9% | 35.4% |
| Beta vs S&P 500 | 0.94 | 1.11 |
| Max drawdown (3Y) | -65.4% | -37.8% |
| Market cap | – | $8.2B |
| P/E (trailing) | 38.9 | 12.3 |
| Dividend yield | 0.00% | 0.64% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KMX | LAD |
|---|---|---|
| 2022 | -53.2% | -30.6% |
| 2023 | +26.0% | +62.0% |
| 2024 | +6.5% | +9.3% |
| 2025 | -52.7% | -6.3% |
| 2026 | +62.1% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMX and LAD good diversifiers for each other?
To a limited degree. At 0.54 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 KMX and LAD?
As of 2026-08-27, the correlation of weekly returns between KMX and LAD is 0.54 over 3 years, 0.52 over 1 year and 0.61 over 5 years.
Is LAD a good diversifier for KMX?
To a limited degree. At 0.54 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 0.54 mean?
A reading of 0.54 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/kmx-vs-lad.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/kmx-vs-lad/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KMX correlations · LAD correlations
