AMAT vs LRCX: Correlation
Applied Materials (AMAT) and Lam Research (LRCX) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AMAT and LRCX?
Across a 3-year window, the weekly returns of AMAT and LRCX correlate at 0.86, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.79) sits close to the 3-year figure. Stretching to 5 years gives 0.89, with an annualized covariance of 1749.5 %².
Few assets follow AMAT as closely as LRCX, which ranks #2 of 34 tracked partners. On 12-month performance LRCX holds a 14.0-point edge, +195.0% against +209.0%. Stability stands out here, with the rolling one-year correlation confined to 0.78 through 0.96.
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.
AMAT vs LRCX: side by side
| AMAT (Applied Materials) | LRCX (Lam Research) | |
|---|---|---|
| 1-year return | +195.0% | +209.0% |
| 5-year return | +269.5% | +452.0% |
| Volatility (ann.) | 43.5% | 46.7% |
| Beta vs S&P 500 | 1.69 | 2.03 |
| Max drawdown (3Y) | -49.9% | -47.1% |
| Market cap | $382.8B | $398.6B |
| P/E (trailing) | 41.3 | 54.4 |
| Dividend yield | 0.41% | 0.33% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | AMAT | LRCX |
|---|---|---|
| 2022 | -37.5% | -40.7% |
| 2023 | +68.0% | +88.6% |
| 2024 | +1.1% | -6.8% |
| 2025 | +59.6% | +139.2% |
| 2026 | +88.4% | +86.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AMAT and LRCX good diversifiers for each other?
No. With a correlation of 0.86, AMAT and LRCX move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between AMAT and LRCX?
The AMAT/LRCX correlation stands at 0.86 on a 3-year window (1 year: 0.79, 5 years: 0.89), computed from weekly returns as of 2026-08-27.
Is LRCX a good diversifier for AMAT?
No. With a correlation of 0.86, AMAT and LRCX move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 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
$ curl https://www.pairbook.io/api/v1/pairs/amat-vs-lrcx.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/amat-vs-lrcx/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AMAT correlations · LRCX correlations
