LMT vs NOC: Correlation
How closely do Lockheed Martin (LMT) and Northrop Grumman (NOC) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LMT and NOC?
On 3 years of weekly data the LMT/NOC correlation comes out at 0.63, strong. Lately the two have moved closer together, with the 1-year correlation at 0.77 versus 0.63 over 3 years. The 5-year figure is 0.71, and annualized covariance runs at 438.8 %².
Few assets follow LMT as closely as NOC, which ranks #1 of 29 tracked partners. Their recent paths diverged sharply: over the last 12 months LMT outperformed by 33.5 percentage points (+27.9% for LMT against -5.6% for NOC). The relationship is regime-dependent: the rolling one-year correlation swung between 0.22 and 0.84 over the past three years, so this pair behaves very differently depending on the market environment.
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.
LMT vs NOC: side by side
| LMT (Lockheed Martin) | NOC (Northrop Grumman) | |
|---|---|---|
| 1-year return | +27.9% | -5.6% |
| 5-year return | +78.9% | +60.1% |
| Volatility (ann.) | 26.0% | 26.7% |
| Beta vs S&P 500 | 0.20 | 0.24 |
| Max drawdown (3Y) | -31.8% | -35.1% |
| Market cap | $130.6B | $77.4B |
| P/E (trailing) | 20.9 | 17.5 |
| Dividend yield | 2.41% | 1.71% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | LMT | NOC |
|---|---|---|
| 2022 | +40.5% | +43.0% |
| 2023 | -4.3% | -12.8% |
| 2024 | +10.0% | +1.9% |
| 2025 | +2.5% | +23.6% |
| 2026 | +18.4% | -3.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LMT and NOC good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LMT and NOC?
The LMT/NOC correlation stands at 0.63 on a 3-year window (1 year: 0.77, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is NOC a good diversifier for LMT?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
A reading of 0.63 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/lmt-vs-noc.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lmt-vs-noc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LMT correlations · NOC correlations
