MCHP vs TXN: Correlation
Measured on weekly returns over the past three years, Microchip Technology (MCHP) and Texas Instruments (TXN) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCHP and TXN?
On 3 years of weekly data the MCHP/TXN correlation comes out at 0.76, strong. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. The 5-year figure is 0.78, and annualized covariance runs at 1224.3 %².
Among the 44 assets we track against MCHP, TXN ranks #5 by 3-year correlation. The last year tells two different stories: TXN led by 16.9 percentage points, +16.2% for MCHP against +33.1% for TXN. The rolling one-year correlation stayed in a tight band between 0.69 and 0.87 over the past three years, which points to a structural rather than episodic relationship.
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 TXN: side by side
| MCHP (Microchip Technology) | TXN (Texas Instruments) | |
|---|---|---|
| 1-year return | +16.2% | +33.1% |
| 5-year return | +5.9% | +60.4% |
| Volatility (ann.) | 46.7% | 34.3% |
| Beta vs S&P 500 | 1.97 | 1.28 |
| Max drawdown (3Y) | -63.8% | -33.4% |
| Market cap | $41.0B | $243.4B |
| P/E (trailing) | 109.4 | 40.6 |
| Dividend yield | 2.46% | 2.15% |
| Sector / category | Information Technology | Information Technology |
Year-by-year returns
| Year | MCHP | TXN |
|---|---|---|
| 2022 | -18.0% | -9.9% |
| 2023 | +30.9% | +6.4% |
| 2024 | -35.0% | +13.1% |
| 2025 | +14.6% | -4.5% |
| 2026 | +20.5% | +56.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCHP and TXN good diversifiers for each other?
Only partially. A correlation of 0.76 means MCHP and TXN 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 TXN?
The MCHP/TXN correlation stands at 0.76 on a 3-year window (1 year: 0.73, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is TXN a good diversifier for MCHP?
Only partially. A correlation of 0.76 means MCHP and TXN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.76 mean?
A reading of 0.76 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 · TXN correlations
