ALGM vs MCHP: Correlation
Measured on weekly returns over the past three years, Allegro MicroSystems, Inc. (ALGM) and Microchip Technology (MCHP) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALGM and MCHP?
Over the past 3 years, ALGM and MCHP moved with a correlation of 0.66, which is strong. Little has changed lately, as the 1-year reading of 0.70 lands near the 3-year figure. Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 1766.0 %².
Within ALGM's tracked universe of 11 assets, MCHP comes in at #4 by 3-year correlation. Their 12-month results are close: +19.5% for ALGM against +16.2% for MCHP.
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.
ALGM vs MCHP: side by side
| ALGM (Allegro MicroSystems, Inc.) | MCHP (Microchip Technology) | |
|---|---|---|
| 1-year return | +19.5% | +16.2% |
| 5-year return | +23.1% | +5.9% |
| Volatility (ann.) | 56.9% | 46.7% |
| Beta vs S&P 500 | 1.83 | 1.97 |
| Max drawdown (3Y) | -57.2% | -63.8% |
| Market cap | $7.0B | $41.0B |
| P/E (trailing) | 537.0 | 109.4 |
| Dividend yield | 0.00% | 2.46% |
| Sector / category | US Listed | Information Technology |
Year-by-year returns
| Year | ALGM | MCHP |
|---|---|---|
| 2022 | -17.0% | -18.0% |
| 2023 | +0.8% | +30.9% |
| 2024 | -27.8% | -35.0% |
| 2025 | +20.7% | +14.6% |
| 2026 | +42.5% | +20.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALGM and MCHP good diversifiers for each other?
Only partially. A correlation of 0.66 means ALGM and MCHP 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 ALGM and MCHP?
The ALGM/MCHP correlation stands at 0.66 on a 3-year window (1 year: 0.70, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is MCHP a good diversifier for ALGM?
Only partially. A correlation of 0.66 means ALGM and MCHP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 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/algm-vs-mchp.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/algm-vs-mchp/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ALGM correlations · MCHP correlations
