LRCX vs SMH: Correlation
Measured on weekly returns over the past three years, Lam Research (LRCX) and VanEck Semiconductor ETF (SMH) carry a correlation of 0.83, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LRCX and SMH?
On 3 years of weekly data the LRCX/SMH correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.77 lands near the 3-year figure. The 5-year figure is 0.86, and annualized covariance runs at 1307.0 %².
By 3-year correlation, SMH places #5 of the 36 assets tracked against LRCX. Their recent paths diverged sharply: over the last 12 months LRCX outperformed by 115.9 percentage points (+209.0% for LRCX against +93.1% for SMH). Stability stands out here, with the rolling one-year correlation confined to 0.75 through 0.91.
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.
LRCX vs SMH: side by side
| LRCX (Lam Research) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +209.0% | +93.1% |
| 5-year return | +452.0% | +332.8% |
| Volatility (ann.) | 46.7% | 33.7% |
| Beta vs S&P 500 | 2.03 | 1.91 |
| Max drawdown (3Y) | -47.1% | -35.7% |
| Market cap | $398.6B | – |
| P/E (trailing) | 54.4 | – |
| Dividend yield | 0.33% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | LRCX | SMH |
|---|---|---|
| 2022 | -40.7% | -33.5% |
| 2023 | +88.6% | +73.4% |
| 2024 | -6.8% | +39.1% |
| 2025 | +139.2% | +49.2% |
| 2026 | +86.5% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LRCX and SMH good diversifiers for each other?
No: a correlation of 0.83 means LRCX and SMH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between LRCX and SMH?
Using weekly returns as of 2026-08-27: 0.83 over 3 years, with 0.77 over the last year and 0.86 over 5 years.
Is SMH a good diversifier for LRCX?
No: a correlation of 0.83 means LRCX and SMH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.83 mean?
A reading of 0.83 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/lrcx-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lrcx-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LRCX correlations · SMH correlations
