AXTI vs TSEM: Correlation
Measured on weekly returns over the past three years, AXT Inc (AXTI) and Tower Semiconductor Ltd. (TSEM) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AXTI and TSEM?
On 3 years of weekly data the AXTI/TSEM correlation comes out at 0.40, moderate. The relationship has been stable: the 1-year correlation (0.40) sits close to the 3-year figure. The 5-year figure is 0.37, and annualized covariance runs at 2273.5 %².
By 3-year correlation, TSEM places #5 of the 10 assets tracked against AXTI. The last year tells two different stories: AXTI led by 1959.1 percentage points, +2231.7% for AXTI against +272.6% for TSEM. One caveat on sizing: AXTI is 2.1 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.
AXTI vs TSEM: side by side
| AXTI (AXT Inc) | TSEM (Tower Semiconductor Ltd.) | |
|---|---|---|
| 1-year return | +2231.7% | +272.6% |
| 5-year return | +615.0% | +648.0% |
| Volatility (ann.) | 109.1% | 52.1% |
| Beta vs S&P 500 | 2.64 | 1.55 |
| Max drawdown (3Y) | -78.5% | -45.8% |
| Market cap | $4.4B | $24.8B |
| P/E (trailing) | 2230.7 | 87.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | AXTI | TSEM |
|---|---|---|
| 2022 | -50.3% | +8.9% |
| 2023 | -45.2% | -29.4% |
| 2024 | -9.6% | +68.8% |
| 2025 | +653.5% | +128.0% |
| 2026 | +309.3% | +87.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AXTI and TSEM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between AXTI and TSEM?
The AXTI/TSEM correlation stands at 0.40 on a 3-year window (1 year: 0.40, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is TSEM a good diversifier for AXTI?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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
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Related comparisons
Hubs: AXTI correlations · TSEM correlations
