NVDA vs SMH: Correlation
Measured on weekly returns over the past three years, Nvidia (NVDA) and VanEck Semiconductor ETF (SMH) carry a correlation of 0.80, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVDA and SMH?
On 3 years of weekly data the NVDA/SMH correlation comes out at 0.80, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.63 versus 0.80 over 3 years. The 5-year figure is 0.83, and annualized covariance runs at 1204.5 %².
In NVDA's tracked universe of 37 assets, SMH sits right near the top at #1. Their recent paths diverged sharply: over the last 12 months SMH outperformed by 67.4 percentage points (+25.7% for NVDA against +93.1% for SMH). On a rolling one-year basis the correlation drifted between 0.58 and 0.89, a moderate band.
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.
NVDA vs SMH: side by side
| NVDA (Nvidia) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +25.7% | +93.1% |
| 5-year return | +908.3% | +332.8% |
| Volatility (ann.) | 44.5% | 33.7% |
| Beta vs S&P 500 | 2.18 | 1.91 |
| Max drawdown (3Y) | -36.9% | -35.7% |
| Market cap | $5,505.0B | – |
| P/E (trailing) | 32.2 | – |
| Dividend yield | 0.00% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | NVDA | SMH |
|---|---|---|
| 2022 | -50.3% | -33.5% |
| 2023 | +239.0% | +73.4% |
| 2024 | +171.2% | +39.1% |
| 2025 | +38.9% | +49.2% |
| 2026 | +22.4% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NVDA and SMH good diversifiers for each other?
No: a correlation of 0.80 means NVDA and SMH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between NVDA and SMH?
Using weekly returns as of 2026-08-27: 0.80 over 3 years, with 0.63 over the last year and 0.83 over 5 years.
Is SMH a good diversifier for NVDA?
No: a correlation of 0.80 means NVDA and SMH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 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/nvda-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nvda-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NVDA correlations · SMH correlations
