MCHP vs TEL: Correlation
Measured on weekly returns over the past three years, Microchip Technology (MCHP) and TE Connectivity (TEL) 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 TEL?
Across a 3-year window, the weekly returns of MCHP and TEL correlate at 0.49, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.36 versus 0.49 over 3 years. Stretching to 5 years gives 0.59, with an annualized covariance of 662.2 %².
Within MCHP's tracked universe of 44 assets, TEL comes in at #30 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MCHP outperformed by 17.3 percentage points (+16.2% for MCHP against -1.1% for TEL). The relationship is regime-dependent: the rolling one-year correlation swung between 0.17 and 0.85 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: MCHP is 1.6 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.
MCHP vs TEL: side by side
| MCHP (Microchip Technology) | TEL (TE Connectivity) | |
|---|---|---|
| 1-year return | +16.2% | -1.1% |
| 5-year return | +5.9% | +43.7% |
| Volatility (ann.) | 46.7% | 28.8% |
| Beta vs S&P 500 | 1.97 | 1.32 |
| Max drawdown (3Y) | -63.8% | -22.6% |
| Market cap | $41.0B | $58.8B |
| P/E (trailing) | 109.4 | 20.1 |
| Dividend yield | 2.46% | 1.42% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MCHP | TEL |
|---|---|---|
| 2022 | -18.0% | -27.7% |
| 2023 | +30.9% | +24.6% |
| 2024 | -35.0% | +3.5% |
| 2025 | +14.6% | +61.1% |
| 2026 | +20.5% | -9.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCHP and TEL 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 TEL?
As of 2026-08-27, the correlation of weekly returns between MCHP and TEL is 0.49 over 3 years, 0.36 over 1 year and 0.59 over 5 years.
Is TEL 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?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mchp-vs-tel.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mchp-vs-tel/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MCHP correlations · TEL correlations
