AWK vs SMH: Correlation
American Water Works (AWK) and VanEck Semiconductor ETF (SMH) show a negative relationship: their 3-year correlation of weekly returns is -0.20.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AWK and SMH?
Across a 3-year window, the weekly returns of AWK and SMH correlate at -0.20, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.35) than the 3-year average (-0.20). Stretching to 5 years gives 0.06, with an annualized covariance of -140.4 %².
Among the 49 assets we track against AWK, SMH ranks #27 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 96.1 percentage points (-3.0% for AWK against +93.1% for SMH). This link changes with the market regime, having swung between -0.45 and 0.42 on a rolling one-year basis. Note the risk asymmetry: SMH runs 1.6 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.
AWK vs SMH: side by side
| AWK (American Water Works) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | -3.0% | +93.1% |
| 5-year return | -16.6% | +332.8% |
| Volatility (ann.) | 20.7% | 33.7% |
| Beta vs S&P 500 | -0.11 | 1.91 |
| Max drawdown (3Y) | -18.8% | -35.7% |
| Market cap | $27.2B | – |
| P/E (trailing) | 23.7 | – |
| Dividend yield | 2.46% | – |
| Sector / category | Utilities | ETF · Thematic |
Year-by-year returns
| Year | AWK | SMH |
|---|---|---|
| 2022 | -17.9% | -33.5% |
| 2023 | -11.7% | +73.4% |
| 2024 | -3.5% | +39.1% |
| 2025 | +7.4% | +49.2% |
| 2026 | +6.9% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AWK and SMH good diversifiers for each other?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
FAQ
What is the correlation between AWK and SMH?
The AWK/SMH correlation stands at -0.20 on a 3-year window (1 year: -0.35, 5 years: 0.06), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for AWK?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
What does a correlation of -0.20 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/awk-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/awk-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AWK correlations · SMH correlations
