KLAC vs TER: Correlation
KLA Corporation (KLAC) and Teradyne (TER) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KLAC and TER?
Across a 3-year window, the weekly returns of KLAC and TER correlate at 0.60, strong. Recent behaviour matches the longer record: 0.56 over 1 year against 0.60 over 3. Stretching to 5 years gives 0.65, with an annualized covariance of 1432.9 %².
By 3-year correlation, TER places #24 of the 40 assets tracked against KLAC. The last year tells two different stories: TER led by 110.9 percentage points, +107.9% for KLAC against +218.8% for TER. On a rolling one-year basis the correlation drifted between 0.45 and 0.73, a moderate band.
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 TER: side by side
| KLAC (KLA Corporation) | TER (Teradyne) | |
|---|---|---|
| 1-year return | +107.9% | +218.8% |
| 5-year return | +463.9% | +207.9% |
| Volatility (ann.) | 45.6% | 52.5% |
| Beta vs S&P 500 | 1.84 | 1.70 |
| Max drawdown (3Y) | -43.6% | -58.2% |
| Market cap | $240.1B | $58.2B |
| P/E (trailing) | 50.2 | 50.0 |
| Dividend yield | 0.44% | 0.14% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | KLAC | TER |
|---|---|---|
| 2022 | -11.2% | -46.3% |
| 2023 | +56.0% | +24.8% |
| 2024 | +9.4% | +16.5% |
| 2025 | +94.5% | +54.4% |
| 2026 | +51.8% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KLAC and TER good diversifiers for each other?
Only partially. A correlation of 0.60 means KLAC and TER share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between KLAC and TER?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.56 over the last year and 0.65 over 5 years.
Is TER a good diversifier for KLAC?
Only partially. A correlation of 0.60 means KLAC and TER share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
A reading of 0.60 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: KLAC correlations · TER correlations
