NVMI vs SMH: Correlation
Nova Ltd. (NVMI) and VanEck Semiconductor ETF (SMH) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVMI and SMH?
On 3 years of weekly data the NVMI/SMH correlation comes out at 0.71, strong. Little has changed lately, as the 1-year reading of 0.72 lands near the 3-year figure. The 5-year figure is 0.75, and annualized covariance runs at 1235.1 %².
By 3-year correlation, SMH places #5 of the 12 assets tracked against NVMI. Correlation aside, the last 12 months split them widely, with SMH ahead by 52.4 points (+40.7% versus +93.1%). One caveat on sizing: NVMI is 1.5 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.
NVMI vs SMH: side by side
| NVMI (Nova Ltd.) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +40.7% | +93.1% |
| 5-year return | +266.1% | +332.8% |
| Volatility (ann.) | 51.8% | 33.7% |
| Beta vs S&P 500 | 1.93 | 1.91 |
| Max drawdown (3Y) | -40.8% | -35.7% |
| Market cap | $11.8B | – |
| P/E (trailing) | 45.7 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | NVMI | SMH |
|---|---|---|
| 2022 | -44.2% | -33.5% |
| 2023 | +68.2% | +73.4% |
| 2024 | +43.4% | +39.1% |
| 2025 | +66.7% | +49.2% |
| 2026 | +12.9% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NVMI and SMH good diversifiers for each other?
Only partially. A correlation of 0.71 means NVMI and SMH 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 NVMI and SMH?
The NVMI/SMH correlation stands at 0.71 on a 3-year window (1 year: 0.72, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for NVMI?
Only partially. A correlation of 0.71 means NVMI and SMH 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/nvmi-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nvmi-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NVMI correlations · SMH correlations
