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LMT vs TXT: Correlation

How closely do Lockheed Martin (LMT) and Textron (TXT) trade together? Their weekly returns over three years give a correlation of 0.35, which is moderate.

Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology

Correlation (3Y)

0.35

moderate

Correlation (1Y)

0.32

last 12 months

Correlation (5Y)

0.33

long-run

Ann. covariance

232.3

%² · weekly, annualized

How correlated are LMT and TXT?

Across a 3-year window, the weekly returns of LMT and TXT correlate at 0.35, moderate. Little has changed lately, as the 1-year reading of 0.32 lands near the 3-year figure. Stretching to 5 years gives 0.33, with an annualized covariance of 232.3 %².

Within LMT's tracked universe of 29 assets, TXT comes in at #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with LMT ahead by 27.2 points (+27.9% versus +0.7%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.01 and 0.57 over the past three years, so this pair behaves very differently depending on the market environment.

Rolling one-year correlation of weekly returns over the past three years.

How is this computed?

Pearson correlation on weekly returns: ρ(A,B) = cov(r_A, r_B) / (σ_A · σ_B), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.

LMT vs TXT: side by side

	LMT (Lockheed Martin)	TXT (Textron)
1-year return	+27.9%	+0.7%
5-year return	+78.9%	+15.1%
Volatility (ann.)	26.0%	25.4%
Beta vs S&P 500	0.20	0.89
Max drawdown (3Y)	-31.8%	-37.3%
Market cap	$130.6B	$14.2B
P/E (trailing)	20.9	15.7
Dividend yield	2.41%	0.10%
Sector / category	Industrials	Industrials

Lower P/E: TXT 15.7 vs 20.9Higher yield: LMT 2.41% vs 0.10%Smaller drawdown: LMT -31.8% vs -37.3%Higher 5y return: LMT +78.9% vs +15.1%

Both assets over the last year, indexed to 100 at the starting week. ■ LMT · ■ TXT

Year-by-year returns

Year	LMT	TXT
2022	+40.5%	-8.2%
2023	-4.3%	+13.7%
2024	+10.0%	-4.8%
2025	+2.5%	+14.1%
2026	+18.4%	-5.5%

Calendar-year price returns; the current year is year-to-date as of the data date above.

Are LMT and TXT good diversifiers for each other?

Reasonably. At 0.35, LMT and TXT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.

FAQ

What is the correlation between LMT and TXT?

The LMT/TXT correlation stands at 0.35 on a 3-year window (1 year: 0.32, 5 years: 0.33), computed from weekly returns as of 2026-08-27.

Is TXT a good diversifier for LMT?

Reasonably. At 0.35, LMT and TXT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.

What does a correlation of 0.35 mean?

Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.

Use this data

JSON API · no key required

$ curl https://www.pairbook.io/api/v1/pairs/lmt-vs-txt.json

Drop this badge in a README or notebook; it updates with the data:

[![LMT vs TXT correlation](https://www.pairbook.io/api/v1/badge/lmt-vs-txt.svg)](https://www.pairbook.io/pair/lmt-vs-txt/)

The core API is free. Terms and every endpoint in the API documentation.

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Hubs: LMT correlations · TXT correlations