MCHP vs SNPS: Correlation
Measured on weekly returns over the past three years, Microchip Technology (MCHP) and Synopsys (SNPS) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCHP and SNPS?
Over the past 3 years, MCHP and SNPS moved with a correlation of 0.49, which is moderate. Recent behaviour matches the longer record: 0.45 over 1 year against 0.49 over 3. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 960.5 %².
By 3-year correlation, SNPS places #29 of the 44 assets tracked against MCHP. Correlation aside, the last 12 months split them widely, with MCHP ahead by 39.1 points (+16.2% versus -22.9%). The rolling one-year correlation moved between 0.38 and 0.69 over the past three years, a moderate range.
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 SNPS: side by side
| MCHP (Microchip Technology) | SNPS (Synopsys) | |
|---|---|---|
| 1-year return | +16.2% | -22.9% |
| 5-year return | +5.9% | +39.1% |
| Volatility (ann.) | 46.7% | 42.2% |
| Beta vs S&P 500 | 1.97 | 1.57 |
| Max drawdown (3Y) | -63.8% | -42.3% |
| Market cap | $41.0B | $89.1B |
| P/E (trailing) | 109.4 | 71.4 |
| Dividend yield | 2.46% | 0.00% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MCHP | SNPS |
|---|---|---|
| 2022 | -18.0% | -13.4% |
| 2023 | +30.9% | +61.3% |
| 2024 | -35.0% | -5.7% |
| 2025 | +14.6% | -3.2% |
| 2026 | +20.5% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCHP and SNPS good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between MCHP and SNPS?
The MCHP/SNPS correlation stands at 0.49 on a 3-year window (1 year: 0.45, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is SNPS a good diversifier for MCHP?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: MCHP correlations · SNPS correlations
