FORM vs SMH: Correlation
How closely do FormFactor, Inc. (FORM) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FORM and SMH?
On 3 years of weekly data the FORM/SMH correlation comes out at 0.69, strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.69 over 3. The 5-year figure is 0.69, and annualized covariance runs at 1358.8 %².
By 3-year correlation, SMH places #5 of the 14 assets tracked against FORM. Their recent paths diverged sharply: over the last 12 months FORM outperformed by 183.5 percentage points (+276.6% for FORM against +93.1% for SMH). One caveat on sizing: FORM is 1.7 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.
FORM vs SMH: side by side
| FORM (FormFactor, Inc.) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +276.6% | +93.1% |
| 5-year return | +178.6% | +332.8% |
| Volatility (ann.) | 58.1% | 33.7% |
| Beta vs S&P 500 | 2.08 | 1.91 |
| Max drawdown (3Y) | -62.7% | -35.7% |
| Market cap | $8.6B | – |
| P/E (trailing) | 74.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | FORM | SMH |
|---|---|---|
| 2022 | -51.4% | -33.5% |
| 2023 | +87.6% | +73.4% |
| 2024 | +5.5% | +39.1% |
| 2025 | +26.8% | +49.2% |
| 2026 | +97.6% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FORM and SMH good diversifiers for each other?
To a limited degree. At 0.69 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between FORM and SMH?
Using weekly returns as of 2026-08-27: 0.69 over 3 years, with 0.65 over the last year and 0.69 over 5 years.
Is SMH a good diversifier for FORM?
To a limited degree. At 0.69 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.69 mean?
A reading of 0.69 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/form-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/form-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FORM correlations · SMH correlations
