MCHP vs SMH: Correlation
How closely do Microchip Technology (MCHP) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCHP and SMH?
Across a 3-year window, the weekly returns of MCHP and SMH correlate at 0.71, strong. Recent behaviour matches the longer record: 0.76 over 1 year against 0.71 over 3. Stretching to 5 years gives 0.75, with an annualized covariance of 1115.6 %².
Among the 44 assets we track against MCHP, SMH ranks #7 by 3-year correlation. The last year tells two different stories: SMH led by 76.9 percentage points, +16.2% for MCHP against +93.1% for SMH. The link looks structural: the rolling one-year correlation barely moved, holding between 0.59 and 0.82.
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.
MCHP vs SMH: side by side
| MCHP (Microchip Technology) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +16.2% | +93.1% |
| 5-year return | +5.9% | +332.8% |
| Volatility (ann.) | 46.7% | 33.7% |
| Beta vs S&P 500 | 1.97 | 1.91 |
| Max drawdown (3Y) | -63.8% | -35.7% |
| Market cap | $41.0B | – |
| P/E (trailing) | 109.4 | – |
| Dividend yield | 2.46% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | MCHP | SMH |
|---|---|---|
| 2022 | -18.0% | -33.5% |
| 2023 | +30.9% | +73.4% |
| 2024 | -35.0% | +39.1% |
| 2025 | +14.6% | +49.2% |
| 2026 | +20.5% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCHP and SMH good diversifiers for each other?
To a limited degree. At 0.71 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 MCHP and SMH?
The MCHP/SMH correlation stands at 0.71 on a 3-year window (1 year: 0.76, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for MCHP?
To a limited degree. At 0.71 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 0.71 mean?
On the −1 to +1 scale, 0.71 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
$ curl https://www.pairbook.io/api/v1/pairs/mchp-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mchp-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MCHP correlations · SMH correlations
