FLEX vs SMH: Correlation
How closely do Flex Ltd. (FLEX) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FLEX and SMH?
Over the past 3 years, FLEX and SMH moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 1035.4 %².
Among the 45 assets we track against FLEX, SMH ranks #7 by 3-year correlation. Correlation aside, the last 12 months split them widely, with FLEX ahead by 21.5 points (+114.6% versus +93.1%). On a rolling one-year basis the correlation drifted between 0.33 and 0.79, a moderate band. One caveat on sizing: FLEX is 1.5 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.
FLEX vs SMH: side by side
| FLEX (Flex Ltd.) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +114.6% | +93.1% |
| 5-year return | +716.5% | +332.8% |
| Volatility (ann.) | 50.9% | 33.7% |
| Beta vs S&P 500 | 1.70 | 1.91 |
| Max drawdown (3Y) | -40.0% | -35.7% |
| Market cap | $42.6B | – |
| P/E (trailing) | 43.2 | – |
| Dividend yield | 0.00% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | FLEX | SMH |
|---|---|---|
| 2022 | +17.1% | -33.5% |
| 2023 | +41.9% | +73.4% |
| 2024 | +67.2% | +39.1% |
| 2025 | +57.4% | +49.2% |
| 2026 | +90.8% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FLEX and SMH good diversifiers for each other?
Only partially. A correlation of 0.60 means FLEX 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 FLEX and SMH?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.58 over the last year and 0.60 over 5 years.
Is SMH a good diversifier for FLEX?
Only partially. A correlation of 0.60 means FLEX 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 0.60 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/flex-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/flex-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FLEX correlations · SMH correlations
