KLAC vs SMH: Correlation
KLA Corporation (KLAC) and VanEck Semiconductor ETF (SMH) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KLAC and SMH?
On 3 years of weekly data the KLAC/SMH correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. The 5-year figure is 0.84, and annualized covariance runs at 1239.8 %².
Within KLAC's tracked universe of 40 assets, SMH comes in at #4 by 3-year correlation. The trailing year gives KLAC the advantage: +107.9% versus +93.1%, a 14.8-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.71 through 0.92.
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 SMH: side by side
| KLAC (KLA Corporation) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +107.9% | +93.1% |
| 5-year return | +463.9% | +332.8% |
| Volatility (ann.) | 45.6% | 33.7% |
| Beta vs S&P 500 | 1.84 | 1.91 |
| Max drawdown (3Y) | -43.6% | -35.7% |
| Market cap | $240.1B | – |
| P/E (trailing) | 50.2 | – |
| Dividend yield | 0.44% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | KLAC | SMH |
|---|---|---|
| 2022 | -11.2% | -33.5% |
| 2023 | +56.0% | +73.4% |
| 2024 | +9.4% | +39.1% |
| 2025 | +94.5% | +49.2% |
| 2026 | +51.8% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KLAC and SMH good diversifiers for each other?
No: a correlation of 0.81 means KLAC and SMH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between KLAC and SMH?
The KLAC/SMH correlation stands at 0.81 on a 3-year window (1 year: 0.74, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for KLAC?
No: a correlation of 0.81 means KLAC and SMH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.81 mean?
A reading of 0.81 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
$ curl https://www.pairbook.io/api/v1/pairs/klac-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/klac-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: KLAC correlations · SMH correlations
