ADI vs STM: Correlation
How closely do Analog Devices (ADI) and STMicroelectronics N.V. (STM) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADI and STM?
Over the past 3 years, ADI and STM moved with a correlation of 0.72, which is strong. The link has loosened recently: the 1-year correlation (0.61) runs below the 3-year figure (0.72). Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 1086.8 %².
Among the 51 assets we track against ADI, STM ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months STM outperformed by 42.4 percentage points (+48.6% for ADI against +91.0% for STM).
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.
ADI vs STM: side by side
| ADI (Analog Devices) | STM (STMicroelectronics N.V.) | |
|---|---|---|
| 1-year return | +48.6% | +91.0% |
| 5-year return | +143.1% | +19.4% |
| Volatility (ann.) | 32.6% | 46.5% |
| Beta vs S&P 500 | 1.56 | 1.62 |
| Max drawdown (3Y) | -32.2% | -64.6% |
| Market cap | $181.5B | $45.8B |
| P/E (trailing) | 44.6 | – |
| Dividend yield | 1.15% | 0.72% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | ADI | STM |
|---|---|---|
| 2022 | -4.9% | -26.8% |
| 2023 | +23.4% | +41.7% |
| 2024 | +8.8% | -49.7% |
| 2025 | +29.8% | +5.3% |
| 2026 | +38.9% | +98.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ADI and STM good diversifiers for each other?
Only partially. A correlation of 0.72 means ADI and STM 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 ADI and STM?
The ADI/STM correlation stands at 0.72 on a 3-year window (1 year: 0.61, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is STM a good diversifier for ADI?
Only partially. A correlation of 0.72 means ADI and STM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 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/adi-vs-stm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/adi-vs-stm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ADI correlations · STM correlations
