KTOS vs MRCY: Correlation
Kratos Defense & Security Solutions, Inc. (KTOS) and Mercury Systems Inc (MRCY) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KTOS and MRCY?
On 3 years of weekly data the KTOS/MRCY correlation comes out at 0.58, moderate. The link has tightened recently: the 1-year correlation (0.71) runs above the 3-year figure (0.58). The 5-year figure is 0.53, and annualized covariance runs at 1700.0 %².
MRCY is one of the assets that tracks KTOS most closely: it ranks #3 out of the 21 assets we track against KTOS. Their recent paths diverged sharply: over the last 12 months MRCY outperformed by 53.8 percentage points (-21.0% for KTOS against +32.8% for MRCY).
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 MRCY: side by side
| KTOS (Kratos Defense & Security Solutions, Inc.) | MRCY (Mercury Systems Inc) | |
|---|---|---|
| 1-year return | -21.0% | +32.8% |
| 5-year return | +117.5% | +79.4% |
| Volatility (ann.) | 59.9% | 48.8% |
| Beta vs S&P 500 | 1.62 | 1.23 |
| Max drawdown (3Y) | -66.4% | -35.0% |
| Market cap | $10.1B | $5.4B |
| P/E (trailing) | 315.8 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KTOS | MRCY |
|---|---|---|
| 2022 | -46.8% | -18.7% |
| 2023 | +96.6% | -18.3% |
| 2024 | +30.0% | +14.8% |
| 2025 | +187.8% | +73.8% |
| 2026 | -29.3% | +23.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KTOS and MRCY good diversifiers for each other?
Only partially. A correlation of 0.58 means KTOS and MRCY 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 KTOS and MRCY?
As of 2026-08-27, the correlation of weekly returns between KTOS and MRCY is 0.58 over 3 years, 0.71 over 1 year and 0.53 over 5 years.
Is MRCY a good diversifier for KTOS?
Only partially. A correlation of 0.58 means KTOS and MRCY 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?
On the −1 to +1 scale, 0.58 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/ktos-vs-mrcy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ktos-vs-mrcy/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KTOS correlations · MRCY correlations
