Lockheed Martin Correlations

LMT Stock

USD 439.70 27.04 5.79%

The current 90-days correlation between Lockheed Martin and Northrop Grumman is 0.76 (i.e., Poor 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

Average diversification

The correlation between Lockheed Martin and DJI is 0.1 (i.e., Average 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.

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

0.87	GD	General Dynamics	Pair Corr
0.75	HII	Huntington Ingalls Sell-off Trend	Pair Corr
0.87	LHX	L3Harris Technologies	Pair Corr
0.65	NOC	Northrop Grumman	Pair Corr
0.79	TXT	Textron	Pair Corr

Moving against Lockheed Stock

0.7	EH	Ehang Holdings	Pair Corr
0.7	GE	GE Aerospace	Pair Corr
0.69	PL	Planet Labs PBC Earnings Call This Week	Pair Corr
0.56	SATLW	Satellogic Warrant	Pair Corr
0.34	BA	Boeing	Pair Corr
0.32	BA-PA	Boeing	Pair Corr
0.63	HWM	Howmet Aerospace	Pair Corr
0.5	SPR	Spirit Aerosystems	Pair Corr
0.47	RDW	Redwire Corp	Pair Corr
0.43	RTX	Raytheon Technologies	Pair Corr
0.38	NPK	National Presto Indu	Pair Corr
0.31	TDG	Transdigm Group	Pair Corr
0.69	TGI	Triumph Group Sell-off Trend	Pair Corr
0.5	WWD	Woodward	Pair Corr

Related Correlations Analysis

	NOC	GD	LHX	BA	RTX	HII	SPCE
NOC		0.81	0.84	-0.46	0.31	0.75	-0.12	NOC
GD	0.81		0.88	-0.5	-0.1	0.84	0.22	GD
LHX	0.84	0.88		-0.45	-0.1	0.78	0.26	LHX
BA	-0.46	-0.5	-0.45		-0.18	-0.5	0.36	BA
RTX	0.31	-0.1	-0.1	-0.18		-0.02	-0.88	RTX
HII	0.75	0.84	0.78	-0.5	-0.02		0.15	HII
SPCE	-0.12	0.22	0.26	0.36	-0.88	0.15		SPCE
	NOC	GD	LHX	BA	RTX	HII	SPCE

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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

LHX	+ 0.88	GD
LHX	+ 0.84	NOC
HII	+ 0.84	GD
GD	+ 0.81	NOC
HII	+ 0.78	LHX
HII	+ 0.75	NOC

High negative correlations

SPCE	- 0.88	RTX
HII	- 0.5	BA
BA	- 0.5	GD
BA	- 0.46	NOC
BA	- 0.45	LHX
RTX	- 0.18	BA

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	1.23	0.03	0.06	(2.40)	1.61	(1.32)	2.98	(3.30)	8.42
GD	1.00	0.06	0.06	0.05	1.50	(0.88)	1.86	(2.20)	7.72
LHX	1.06	(0.07)	0.00	(0.32)	0.00	0.00	2.06	(2.53)	6.75
BA	1.52	0.13	0.06	0.06	2.09	(1.50)	3.22	(2.90)	9.94
RTX	1.02	0.28	0.22	0.36	1.13	(1.12)	2.52	(2.51)	7.67
HII	1.83	0.20	0.06	0.20	3.66	(1.88)	5.24	(3.51)	21.51
SPCE	3.38	(0.50)	0.00	(3.86)	0.00	0.00	7.43	(6.90)	21.25

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC