KLAC vs LRCX: Correlation
How closely do KLA Corporation (KLAC) and Lam Research (LRCX) trade together? Their weekly returns over three years give a correlation of 0.86, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KLAC and LRCX?
Over the past 3 years, KLAC and LRCX moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.81 over 1 year against 0.86 over 3. Over 5 years the correlation is 0.88, and the annualized covariance of weekly returns is 1840.7 %².
In KLAC's tracked universe of 40 assets, LRCX sits right near the top at #2. The last year tells two different stories: LRCX led by 101.1 percentage points, +107.9% for KLAC against +209.0% for LRCX. The rolling one-year correlation stayed in a tight band between 0.79 and 0.94 over the past three years, which points to a structural rather than episodic relationship.
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.
KLAC vs LRCX: side by side
| KLAC (KLA Corporation) | LRCX (Lam Research) | |
|---|---|---|
| 1-year return | +107.9% | +209.0% |
| 5-year return | +463.9% | +452.0% |
| Volatility (ann.) | 45.6% | 46.7% |
| Beta vs S&P 500 | 1.84 | 2.03 |
| Max drawdown (3Y) | -43.6% | -47.1% |
| Market cap | $240.1B | $398.6B |
| P/E (trailing) | 50.2 | 54.4 |
| Dividend yield | 0.44% | 0.33% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | KLAC | LRCX |
|---|---|---|
| 2022 | -11.2% | -40.7% |
| 2023 | +56.0% | +88.6% |
| 2024 | +9.4% | -6.8% |
| 2025 | +94.5% | +139.2% |
| 2026 | +51.8% | +86.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KLAC and LRCX good diversifiers for each other?
No. With a correlation of 0.86, KLAC and LRCX move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between KLAC and LRCX?
The KLAC/LRCX correlation stands at 0.86 on a 3-year window (1 year: 0.81, 5 years: 0.88), computed from weekly returns as of 2026-08-27.
Is LRCX a good diversifier for KLAC?
No. With a correlation of 0.86, KLAC and LRCX move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 mean?
A reading of 0.86 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: KLAC correlations · LRCX correlations
