LMT vs SPY: Correlation
How closely do Lockheed Martin (LMT) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.11, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LMT and SPY?
On 3 years of weekly data the LMT/SPY correlation comes out at 0.11, weak. The relationship has been stable: the 1-year correlation (0.03) sits close to the 3-year figure. The 5-year figure is 0.21, and annualized covariance runs at 41.2 %².
Among the 29 assets we track against LMT, SPY ranks #17 by 3-year correlation. On 12-month performance LMT holds a 7.3-point edge, +27.9% against +20.6%. The rolling one-year correlation moved between -0.16 and 0.33 over the past three years, a moderate range. Note the risk asymmetry: LMT runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 SPY: side by side
| LMT (Lockheed Martin) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +27.9% | +20.6% |
| 5-year return | +78.9% | +82.4% |
| Volatility (ann.) | 26.0% | 14.5% |
| Beta vs S&P 500 | 0.20 | 1.00 |
| Max drawdown (3Y) | -31.8% | -18.8% |
| Market cap | $130.6B | – |
| P/E (trailing) | 20.9 | – |
| Dividend yield | 2.41% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Industrials | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | LMT | SPY |
|---|---|---|
| 2022 | +40.5% | -18.2% |
| 2023 | -4.3% | +26.2% |
| 2024 | +10.0% | +24.9% |
| 2025 | +2.5% | +17.7% |
| 2026 | +18.4% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.17% of SPY is LMT itself, so the fund partly moves with the stock by construction.
Are LMT and SPY good diversifiers for each other?
Yes. With a correlation of 0.11, LMT and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between LMT and SPY?
Using weekly returns as of 2026-08-27: 0.11 over 3 years, with 0.03 over the last year and 0.21 over 5 years.
Is SPY a good diversifier for LMT?
Yes. With a correlation of 0.11, LMT and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.11 mean?
On the −1 to +1 scale, 0.11 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/lmt-vs-spy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lmt-vs-spy/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LMT correlations · SPY correlations
