AMAT vs SMH: Correlation
Measured on weekly returns over the past three years, Applied Materials (AMAT) and VanEck Semiconductor ETF (SMH) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AMAT and SMH?
Over the past 3 years, AMAT and SMH moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 1185.8 %².
Few assets follow AMAT as closely as SMH, which ranks #3 of 34 tracked partners. Correlation aside, the last 12 months split them widely, with AMAT ahead by 101.9 points (+195.0% versus +93.1%). Stability stands out here, with the rolling one-year correlation confined to 0.69 through 0.91.
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.
AMAT vs SMH: side by side
| AMAT (Applied Materials) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +195.0% | +93.1% |
| 5-year return | +269.5% | +332.8% |
| Volatility (ann.) | 43.5% | 33.7% |
| Beta vs S&P 500 | 1.69 | 1.91 |
| Max drawdown (3Y) | -49.9% | -35.7% |
| Market cap | $382.8B | – |
| P/E (trailing) | 41.3 | – |
| Dividend yield | 0.41% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | AMAT | SMH |
|---|---|---|
| 2022 | -37.5% | -33.5% |
| 2023 | +68.0% | +73.4% |
| 2024 | +1.1% | +39.1% |
| 2025 | +59.6% | +49.2% |
| 2026 | +88.4% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AMAT and SMH good diversifiers for each other?
No. With a correlation of 0.81, AMAT and SMH move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between AMAT and SMH?
The AMAT/SMH correlation stands at 0.81 on a 3-year window (1 year: 0.74, 5 years: 0.85), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for AMAT?
No. With a correlation of 0.81, AMAT and SMH move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 mean?
A reading of 0.81 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/amat-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/amat-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AMAT correlations · SMH correlations
