SOXX vs STM: Correlation
How closely do iShares Semiconductor ETF (SOXX) and STMicroelectronics N.V. (STM) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOXX and STM?
On 3 years of weekly data the SOXX/STM correlation comes out at 0.70, strong. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. The 5-year figure is 0.73, and annualized covariance runs at 1137.6 %².
By 3-year correlation, STM places #44 of the 127 assets tracked against SOXX. Their recent paths diverged sharply: over the last 12 months SOXX outperformed by 19.0 percentage points (+110.0% for SOXX against +91.0% for STM).
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.
SOXX vs STM: side by side
| SOXX (iShares Semiconductor ETF) | STM (STMicroelectronics N.V.) | |
|---|---|---|
| 1-year return | +110.0% | +91.0% |
| 5-year return | +247.5% | +19.4% |
| Volatility (ann.) | 35.2% | 46.5% |
| Beta vs S&P 500 | 1.93 | 1.62 |
| Max drawdown (3Y) | -41.4% | -64.6% |
| Market cap | – | $45.8B |
| P/E (trailing) | – | – |
| Dividend yield | 0.29% | 0.72% |
| Expense ratio | 0.33% | – |
| Assets under management | $44.7B | – |
| Sector / category | ETF · Thematic | US Listed |
On the fund side, SOXX sits in the Technology category at iShares, with $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield.
Year-by-year returns
| Year | SOXX | STM |
|---|---|---|
| 2022 | -35.1% | -26.8% |
| 2023 | +67.1% | +41.7% |
| 2024 | +12.9% | -49.7% |
| 2025 | +40.7% | +5.3% |
| 2026 | +74.7% | +98.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SOXX holds STM at a 0.65% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SOXX and STM good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SOXX and STM?
The SOXX/STM correlation stands at 0.70 on a 3-year window (1 year: 0.63, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is STM a good diversifier for SOXX?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.70 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/soxx-vs-stm.json
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Related comparisons
Hubs: SOXX correlations · STM correlations
