KTOS vs LMT: Correlation
How closely do Kratos Defense & Security Solutions, Inc. (KTOS) and Lockheed Martin (LMT) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KTOS and LMT?
Across a 3-year window, the weekly returns of KTOS and LMT correlate at 0.42, moderate. Little has changed lately, as the 1-year reading of 0.48 lands near the 3-year figure. Stretching to 5 years gives 0.39, with an annualized covariance of 655.9 %².
Among the 21 assets we track against KTOS, LMT ranks #11 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LMT outperformed by 48.9 percentage points (-21.0% for KTOS against +27.9% for LMT). Risk is not evenly split, since KTOS carries 2.3 times the volatility of the other side.
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.
KTOS vs LMT: side by side
| KTOS (Kratos Defense & Security Solutions, Inc.) | LMT (Lockheed Martin) | |
|---|---|---|
| 1-year return | -21.0% | +27.9% |
| 5-year return | +117.5% | +78.9% |
| Volatility (ann.) | 59.9% | 26.0% |
| Beta vs S&P 500 | 1.62 | 0.20 |
| Max drawdown (3Y) | -66.4% | -31.8% |
| Market cap | $10.1B | $130.6B |
| P/E (trailing) | 315.8 | 20.9 |
| Dividend yield | 0.00% | 2.41% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | KTOS | LMT |
|---|---|---|
| 2022 | -46.8% | +40.5% |
| 2023 | +96.6% | -4.3% |
| 2024 | +30.0% | +10.0% |
| 2025 | +187.8% | +2.5% |
| 2026 | -29.3% | +18.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KTOS and LMT good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between KTOS and LMT?
As of 2026-08-27, the correlation of weekly returns between KTOS and LMT is 0.42 over 3 years, 0.48 over 1 year and 0.39 over 5 years.
Is LMT a good diversifier for KTOS?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.42 mean?
A reading of 0.42 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/ktos-vs-lmt.json
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[](https://www.pairbook.io/pair/ktos-vs-lmt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KTOS correlations · LMT correlations
