LITE vs TSEM: Correlation
How closely do Lumentum (LITE) and Tower Semiconductor Ltd. (TSEM) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LITE and TSEM?
Over the past 3 years, LITE and TSEM moved with a correlation of 0.50, which is moderate. The relationship has been stable: the 1-year correlation (0.42) sits close to the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 1708.3 %².
Within LITE's tracked universe of 34 assets, TSEM comes in at #19 by 3-year correlation. Correlation aside, the last 12 months split them widely, with LITE ahead by 387.2 points (+659.8% versus +272.6%).
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.
LITE vs TSEM: side by side
| LITE (Lumentum) | TSEM (Tower Semiconductor Ltd.) | |
|---|---|---|
| 1-year return | +659.8% | +272.6% |
| 5-year return | +998.1% | +648.0% |
| Volatility (ann.) | 65.5% | 52.1% |
| Beta vs S&P 500 | 2.36 | 1.55 |
| Max drawdown (3Y) | -50.6% | -45.8% |
| Market cap | $85.8B | $24.8B |
| P/E (trailing) | – | 87.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | LITE | TSEM |
|---|---|---|
| 2022 | -50.7% | +8.9% |
| 2023 | +0.5% | -29.4% |
| 2024 | +60.1% | +68.8% |
| 2025 | +339.1% | +128.0% |
| 2026 | +159.4% | +87.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LITE and TSEM good diversifiers for each other?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LITE and TSEM?
As of 2026-08-27, the correlation of weekly returns between LITE and TSEM is 0.50 over 3 years, 0.42 over 1 year and 0.45 over 5 years.
Is TSEM a good diversifier for LITE?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.50 mean?
On the −1 to +1 scale, 0.50 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lite-vs-tsem.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lite-vs-tsem/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LITE correlations · TSEM correlations
