MPWR vs SMH: Correlation
How closely do Monolithic Power Systems (MPWR) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MPWR and SMH?
Across a 3-year window, the weekly returns of MPWR and SMH correlate at 0.75, strong. The past 12 months show a weaker link (0.64) than the 3-year average (0.75). Stretching to 5 years gives 0.78, with an annualized covariance of 1209.2 %².
SMH is one of the assets that tracks MPWR most closely: it ranks #1 out of the 41 assets we track against MPWR. The last year tells two different stories: SMH led by 40.7 percentage points, +52.4% for MPWR against +93.1% for SMH. Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.85.
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.
MPWR vs SMH: side by side
| MPWR (Monolithic Power Systems) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +52.4% | +93.1% |
| 5-year return | +170.3% | +332.8% |
| Volatility (ann.) | 48.1% | 33.7% |
| Beta vs S&P 500 | 2.22 | 1.91 |
| Max drawdown (3Y) | -51.6% | -35.7% |
| Market cap | $64.4B | – |
| P/E (trailing) | 79.4 | – |
| Dividend yield | 0.55% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | MPWR | SMH |
|---|---|---|
| 2022 | -27.8% | -33.5% |
| 2023 | +79.8% | +73.4% |
| 2024 | -5.6% | +39.1% |
| 2025 | +54.5% | +49.2% |
| 2026 | +45.2% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MPWR and SMH good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MPWR and SMH?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.64 over the last year and 0.78 over 5 years.
Is SMH a good diversifier for MPWR?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 mean?
A reading of 0.75 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mpwr-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mpwr-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MPWR correlations · SMH correlations
