LRCX vs TER: Correlation
How closely do Lam Research (LRCX) and Teradyne (TER) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LRCX and TER?
On 3 years of weekly data the LRCX/TER correlation comes out at 0.61, strong. Recent behaviour matches the longer record: 0.56 over 1 year against 0.61 over 3. The 5-year figure is 0.66, and annualized covariance runs at 1484.5 %².
By 3-year correlation, TER places #21 of the 36 assets tracked against LRCX. The trailing year gives TER the advantage: +209.0% versus +218.8%, a 9.8-point spread. On a rolling one-year basis the correlation drifted between 0.47 and 0.78, 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.
LRCX vs TER: side by side
| LRCX (Lam Research) | TER (Teradyne) | |
|---|---|---|
| 1-year return | +209.0% | +218.8% |
| 5-year return | +452.0% | +207.9% |
| Volatility (ann.) | 46.7% | 52.5% |
| Beta vs S&P 500 | 2.03 | 1.70 |
| Max drawdown (3Y) | -47.1% | -58.2% |
| Market cap | $398.6B | $58.2B |
| P/E (trailing) | 54.4 | 50.0 |
| Dividend yield | 0.33% | 0.14% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | LRCX | TER |
|---|---|---|
| 2022 | -40.7% | -46.3% |
| 2023 | +88.6% | +24.8% |
| 2024 | -6.8% | +16.5% |
| 2025 | +139.2% | +54.4% |
| 2026 | +86.5% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LRCX and TER good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LRCX and TER?
The LRCX/TER correlation stands at 0.61 on a 3-year window (1 year: 0.56, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is TER a good diversifier for LRCX?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lrcx-vs-ter.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lrcx-vs-ter/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LRCX correlations · TER correlations
