MCHP vs STM: Correlation
How closely do Microchip Technology (MCHP) and STMicroelectronics N.V. (STM) 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 STM?
Over the past 3 years, MCHP and STM moved with a correlation of 0.71, which is strong. Recent behaviour matches the longer record: 0.69 over 1 year against 0.71 over 3. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 1550.8 %².
By 3-year correlation, STM places #8 of the 44 assets tracked against MCHP. The last year tells two different stories: STM led by 74.8 percentage points, +16.2% for MCHP against +91.0% for STM.
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 STM: side by side
| MCHP (Microchip Technology) | STM (STMicroelectronics N.V.) | |
|---|---|---|
| 1-year return | +16.2% | +91.0% |
| 5-year return | +5.9% | +19.4% |
| Volatility (ann.) | 46.7% | 46.5% |
| Beta vs S&P 500 | 1.97 | 1.62 |
| Max drawdown (3Y) | -63.8% | -64.6% |
| Market cap | $41.0B | $45.8B |
| P/E (trailing) | 109.4 | – |
| Dividend yield | 2.46% | 0.72% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | MCHP | STM |
|---|---|---|
| 2022 | -18.0% | -26.8% |
| 2023 | +30.9% | +41.7% |
| 2024 | -35.0% | -49.7% |
| 2025 | +14.6% | +5.3% |
| 2026 | +20.5% | +98.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCHP and STM good diversifiers for each other?
Only partially. A correlation of 0.71 means MCHP and STM 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 MCHP and STM?
As of 2026-08-27, the correlation of weekly returns between MCHP and STM is 0.71 over 3 years, 0.69 over 1 year and 0.75 over 5 years.
Is STM a good diversifier for MCHP?
Only partially. A correlation of 0.71 means MCHP and STM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 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-stm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mchp-vs-stm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MCHP correlations · STM correlations
