ALGM vs SMH: Correlation
Measured on weekly returns over the past three years, Allegro MicroSystems, Inc. (ALGM) and VanEck Semiconductor ETF (SMH) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALGM and SMH?
On 3 years of weekly data the ALGM/SMH correlation comes out at 0.64, strong. The relationship has been stable: the 1-year correlation (0.69) sits close to the 3-year figure. The 5-year figure is 0.66, and annualized covariance runs at 1219.6 %².
By 3-year correlation, SMH places #5 of the 11 assets tracked against ALGM. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 73.6 percentage points (+19.5% for ALGM against +93.1% for SMH). One caveat on sizing: ALGM is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 SMH: side by side
| ALGM (Allegro MicroSystems, Inc.) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +19.5% | +93.1% |
| 5-year return | +23.1% | +332.8% |
| Volatility (ann.) | 56.9% | 33.7% |
| Beta vs S&P 500 | 1.83 | 1.91 |
| Max drawdown (3Y) | -57.2% | -35.7% |
| Market cap | $7.0B | – |
| P/E (trailing) | 537.0 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | ALGM | SMH |
|---|---|---|
| 2022 | -17.0% | -33.5% |
| 2023 | +0.8% | +73.4% |
| 2024 | -27.8% | +39.1% |
| 2025 | +20.7% | +49.2% |
| 2026 | +42.5% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALGM and SMH good diversifiers for each other?
Only partially. A correlation of 0.64 means ALGM and SMH 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 SMH?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.69 over the last year and 0.66 over 5 years.
Is SMH a good diversifier for ALGM?
Only partially. A correlation of 0.64 means ALGM and SMH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
A reading of 0.64 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/algm-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/algm-vs-smh/)
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Related comparisons
Hubs: ALGM correlations · SMH correlations
