LRCX vs XLK: Correlation
Lam Research (LRCX) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LRCX and XLK?
Across a 3-year window, the weekly returns of LRCX and XLK correlate at 0.71, strong. The past 12 months show a weaker link (0.57) than the 3-year average (0.71). Stretching to 5 years gives 0.74, with an annualized covariance of 795.3 %².
Within LRCX's tracked universe of 36 assets, XLK comes in at #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with LRCX ahead by 165.6 points (+209.0% versus +43.4%). The rolling one-year correlation moved between 0.53 and 0.86 over the past three years, a moderate range. Note the risk asymmetry: LRCX runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLK: side by side
| LRCX (Lam Research) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +209.0% | +43.4% |
| 5-year return | +452.0% | +145.2% |
| Volatility (ann.) | 46.7% | 24.0% |
| Beta vs S&P 500 | 2.03 | 1.50 |
| Max drawdown (3Y) | -47.1% | -25.7% |
| Market cap | $398.6B | – |
| P/E (trailing) | 54.4 | – |
| Dividend yield | 0.33% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Information Technology | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | LRCX | XLK |
|---|---|---|
| 2022 | -40.7% | -27.7% |
| 2023 | +88.6% | +56.0% |
| 2024 | -6.8% | +21.6% |
| 2025 | +139.2% | +24.6% |
| 2026 | +86.5% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.62% of XLK is LRCX itself, so the fund partly moves with the stock by construction.
Are LRCX and XLK good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LRCX and XLK?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.57 over the last year and 0.74 over 5 years.
Is XLK a good diversifier for LRCX?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.71 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-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lrcx-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LRCX correlations · XLK correlations
