Lockheed Martin Correlations

LMT Stock

USD 481.69 3.66 0.77%

The current 90-days correlation between Lockheed Martin and Northrop Grumman is 0.45 (i.e., Very weak diversification). The correlation of Lockheed Martin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Lockheed Martin Correlation With Market

Very weak diversification

The correlation between Lockheed Martin and DJI is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Lockheed Stock

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lockheed Martin. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

For more information on how to buy Lockheed Stock please use our How to Invest in Lockheed Martin guide.

Moving together with Lockheed Stock

0.63	GD	General Dynamics	Pair Corr
0.61	DRS	Leonardo DRS, Common	Pair Corr
0.64	HII	Huntington Ingalls	Pair Corr
0.68	LHX	L3Harris Technologies	Pair Corr

Moving against Lockheed Stock

0.39	CVU	CPI Aerostructures	Pair Corr
0.32	EH	Ehang Holdings	Pair Corr
0.33	RGR	Sturm Ruger	Pair Corr

Related Correlations Analysis

	NOC	GD	LHX	BA	RTX	HII	SPCE
NOC		0.07	-0.24	-0.45	0.04	-0.24	-0.43	NOC
GD	0.07		0.71	0.64	0.49	0.78	0.13	GD
LHX	-0.24	0.71		0.79	0.61	0.67	0.25	LHX
BA	-0.45	0.64	0.79		0.67	0.78	0.48	BA
RTX	0.04	0.49	0.61	0.67		0.3	0.61	RTX
HII	-0.24	0.78	0.67	0.78	0.3		0.1	HII
SPCE	-0.43	0.13	0.25	0.48	0.61	0.1		SPCE
	NOC	GD	LHX	BA	RTX	HII	SPCE

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

BA	+ 0.79	LHX
HII	+ 0.78	GD
HII	+ 0.78	BA
LHX	+ 0.71	GD
HII	+ 0.67	LHX
RTX	+ 0.67	BA

High negative correlations

BA	- 0.45	NOC
SPCE	- 0.43	NOC
HII	- 0.24	NOC
LHX	- 0.24	NOC

Risk-Adjusted Indicators

There is a big difference between Lockheed Stock performing well and Lockheed Martin Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Lockheed Martin's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NOC	1.31	0.07	0.03	0.37	2.83	(1.25)	2.79	(3.05)	16.79
GD	1.06	0.09	0.05	0.12	1.66	(1.07)	2.65	(2.33)	10.03
LHX	1.06	0.25	0.21	0.37	1.00	(1.34)	3.28	(1.88)	8.65
BA	1.99	0.44	0.13	0.29	2.82	(2.04)	3.99	(3.30)	18.67
RTX	1.31	0.14	0.05	0.18	2.54	(1.27)	2.67	(2.15)	16.43
HII	1.37	0.26	0.15	0.35	1.55	(1.63)	2.32	(2.03)	12.76
SPCE	5.05	0.15	0.03	0.09	5.17	(6.32)	11.81	(8.03)	53.08

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