FNGD vs TSM: Correlation
How closely do MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) trade together? Their weekly returns over three years give a correlation of -0.64, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and TSM?
Across a 3-year window, the weekly returns of FNGD and TSM correlate at -0.64, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.39) than the 3-year average (-0.64). Stretching to 5 years gives -0.62, with an annualized covariance of -1699.2 %².
Within FNGD's tracked universe of 1743 assets, TSM comes in at #1689 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TSM outperformed by 136.2 percentage points (-55.7% for FNGD against +80.5% for TSM). Note the risk asymmetry: FNGD runs 2.2 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.
FNGD vs TSM: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | -55.7% | +80.5% |
| 5-year return | -99.4% | +289.6% |
| Volatility (ann.) | 75.7% | 34.9% |
| Beta vs S&P 500 | -4.54 | 1.59 |
| Max drawdown (3Y) | -97.6% | -36.8% |
| Market cap | – | $2,216.2B |
| P/E (trailing) | 20.6 | 31.1 |
| Dividend yield | 0.00% | 6.22% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FNGD | TSM |
|---|---|---|
| 2022 | +52.2% | -36.7% |
| 2023 | -90.1% | +42.3% |
| 2024 | -76.6% | +92.6% |
| 2025 | -61.4% | +55.9% |
| 2026 | -49.5% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and TSM good diversifiers for each other?
Yes. With a correlation of -0.64, FNGD and TSM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FNGD and TSM?
The FNGD/TSM correlation stands at -0.64 on a 3-year window (1 year: -0.39, 5 years: -0.62), computed from weekly returns as of 2026-08-27.
Is TSM a good diversifier for FNGD?
Yes. With a correlation of -0.64, FNGD and TSM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
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/fngd-vs-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fngd-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FNGD correlations · TSM correlations
