General Dynamics Correlations

GD Stock

USD 279.93 0.12 0.04%

The current 90-days correlation between General Dynamics and Lockheed Martin is 0.49 (i.e., Very weak diversification). The correlation of General Dynamics 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.

General Dynamics Correlation With Market

Poor diversification

The correlation between General Dynamics and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding General Dynamics and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in General Dynamics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

For information on how to trade General Stock refer to our How to Trade General Stock guide.

Moving together with General Stock

0.66	NOC	Northrop Grumman Fiscal Year End 23rd of January 2025	Pair Corr
0.64	TDG	Transdigm Group	Pair Corr

Moving against General Stock

0.38	PL	Planet Labs PBC	Pair Corr
0.4	LLAP	Terran Orbital Corp	Pair Corr
0.32	KITTW	Nauticus Robotics	Pair Corr
0.32	SHMDW	SCHMID Group NV	Pair Corr
0.31	HOVR	New Horizon Aircraft Symbol Change	Pair Corr

Related Correlations Analysis

	LMT	RTX	LHX	NOC	BA	CW	HXL
LMT		0.63	0.04	0.86	-0.01	0.01	0.04	LMT
RTX	0.63		0.57	0.55	-0.24	0.51	0.21	RTX
LHX	0.04	0.57		0.14	-0.67	0.95	-0.11	LHX
NOC	0.86	0.55	0.14		-0.05	0.06	0.1	NOC
BA	-0.01	-0.24	-0.67	-0.05		-0.7	0.59	BA
CW	0.01	0.51	0.95	0.06	-0.7		-0.09	CW
HXL	0.04	0.21	-0.11	0.1	0.59	-0.09		HXL
	LMT	RTX	LHX	NOC	BA	CW	HXL

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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

CW	+ 0.95	LHX
NOC	+ 0.86	LMT
RTX	+ 0.63	LMT
HXL	+ 0.59	BA
LHX	+ 0.57	RTX
NOC	+ 0.55	RTX

High negative correlations

CW	- 0.7	BA
BA	- 0.67	LHX
BA	- 0.24	RTX
HXL	- 0.11	LHX
HXL	- 0.09	CW
BA	- 0.05	NOC

Risk-Adjusted Indicators

There is a big difference between General Stock performing well and General Dynamics 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 General Dynamics' 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
LMT	0.83	(0.09)	0.00	(0.14)	0.00	0.00	1.50	(1.45)	9.77
RTX	0.84	(0.03)	(0.05)	0.03	1.17	(0.82)	2.20	(1.85)	6.80
LHX	0.91	0.05	0.02	0.17	1.17	(0.97)	2.19	(1.69)	8.70
NOC	0.77	(0.09)	0.00	(0.09)	0.00	0.00	1.62	(1.58)	6.85
BA	1.61	(0.27)	0.00	(0.61)	0.00	0.00	3.00	(3.41)	8.59
CW	1.24	0.17	0.11	0.20	1.71	(1.41)	2.96	(2.48)	11.02
HXL	1.12	(0.21)	0.00	(0.07)	0.00	0.00	2.00	(2.66)	6.48

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