SMH vs TER: Correlation
Measured on weekly returns over the past three years, VanEck Semiconductor ETF (SMH) and Teradyne (TER) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMH and TER?
On 3 years of weekly data the SMH/TER correlation comes out at 0.65, strong. Little has changed lately, as the 1-year reading of 0.58 lands near the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 1142.0 %².
By 3-year correlation, TER places #50 of the 88 assets tracked against SMH. Their recent paths diverged sharply: over the last 12 months TER outperformed by 125.7 percentage points (+93.1% for SMH against +218.8% for TER). On a rolling one-year basis the correlation drifted between 0.52 and 0.90, a moderate band. One caveat on sizing: TER is 1.6 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.
SMH vs TER: side by side
| SMH (VanEck Semiconductor ETF) | TER (Teradyne) | |
|---|---|---|
| 1-year return | +93.1% | +218.8% |
| 5-year return | +332.8% | +207.9% |
| Volatility (ann.) | 33.7% | 52.5% |
| Beta vs S&P 500 | 1.91 | 1.70 |
| Max drawdown (3Y) | -35.7% | -58.2% |
| Market cap | – | $58.2B |
| P/E (trailing) | – | 50.0 |
| Dividend yield | – | 0.14% |
| Sector / category | ETF · Thematic | Information Technology |
Year-by-year returns
| Year | SMH | TER |
|---|---|---|
| 2022 | -33.5% | -46.3% |
| 2023 | +73.4% | +24.8% |
| 2024 | +39.1% | +16.5% |
| 2025 | +49.2% | +54.4% |
| 2026 | +59.1% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMH and TER good diversifiers for each other?
To a limited degree. At 0.65 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 SMH and TER?
The SMH/TER correlation stands at 0.65 on a 3-year window (1 year: 0.58, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is TER a good diversifier for SMH?
To a limited degree. At 0.65 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 0.65 mean?
On the −1 to +1 scale, 0.65 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/smh-vs-ter.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/smh-vs-ter/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SMH correlations · TER correlations
