PENG vs SMH: Correlation
How closely do Penguin Solutions, Inc. (PENG) and VanEck Semiconductor ETF (SMH) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PENG and SMH?
Over the past 3 years, PENG and SMH moved with a correlation of 0.62, which is strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.62 over 3. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 1501.2 %².
Few assets follow PENG as closely as SMH, which ranks #2 of 10 tracked partners. Correlation aside, the last 12 months split them widely, with PENG ahead by 23.1 points (+116.2% versus +93.1%). Note the risk asymmetry: PENG runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
PENG vs SMH: side by side
| PENG (Penguin Solutions, Inc.) | SMH (VanEck Semiconductor ETF) | |
|---|---|---|
| 1-year return | +116.2% | +93.1% |
| 5-year return | +118.5% | +332.8% |
| Volatility (ann.) | 71.5% | 33.7% |
| Beta vs S&P 500 | 2.57 | 1.91 |
| Max drawdown (3Y) | -50.5% | -35.7% |
| Market cap | $2.7B | – |
| P/E (trailing) | 37.2 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | PENG | SMH |
|---|---|---|
| 2022 | -58.1% | -33.5% |
| 2023 | +27.2% | +73.4% |
| 2024 | +1.4% | +39.1% |
| 2025 | +1.9% | +49.2% |
| 2026 | +168.1% | +59.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PENG and SMH good diversifiers for each other?
To a limited degree. At 0.62 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 PENG and SMH?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.70 over the last year and 0.66 over 5 years.
Is SMH a good diversifier for PENG?
To a limited degree. At 0.62 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 0.62 mean?
On the −1 to +1 scale, 0.62 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/peng-vs-smh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/peng-vs-smh/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PENG correlations · SMH correlations
