ON vs SMH: Correlation
How closely do ON Semiconductor (ON) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ON and SMH?
Across a 3-year window, the weekly returns of ON and SMH correlate at 0.59, moderate. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 984.1 %².
Within ON's tracked universe of 29 assets, SMH comes in at #10 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SMH ahead by 47.1 points (+46.0% versus +93.1%). The rolling one-year correlation moved between 0.37 and 0.79 over the past three years, a moderate range.
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.
ON vs SMH: side by side
| ON (ON Semiconductor) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +46.0% | +93.1% |
| 5-year return | +65.2% | +332.8% |
| Volatility (ann.) | 49.2% | 33.7% |
| Beta vs S&P 500 | 1.61 | 1.91 |
| Max drawdown (3Y) | -67.9% | -35.7% |
| Market cap | $29.1B | – |
| P/E (trailing) | 47.9 | – |
| Dividend yield | 0.00% | – |
| Sector / category | Information Technology | ETF · Thematic |
Year-by-year returns
| Year | ON | SMH |
|---|---|---|
| 2022 | -8.2% | -33.5% |
| 2023 | +33.9% | +73.4% |
| 2024 | -24.5% | +39.1% |
| 2025 | -14.1% | +49.2% |
| 2026 | +38.1% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ON and SMH good diversifiers for each other?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ON and SMH?
The ON/SMH correlation stands at 0.59 on a 3-year window (1 year: 0.63, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is SMH a good diversifier for ON?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.59 mean?
A reading of 0.59 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/on-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/on-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ON correlations · SMH correlations
