STEM vs WATT: Correlation
Stem, Inc. (STEM) and Energous Corporation (WATT) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STEM and WATT?
On 3 years of weekly data the STEM/WATT correlation comes out at 0.51, moderate. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.51). The 5-year figure is 0.49, and annualized covariance runs at 7782.0 %².
Among the 24 assets we track against STEM, WATT ranks #8 by 3-year correlation. The last year tells two different stories: WATT led by 111.5 percentage points, -64.9% for STEM against +46.6% for WATT.
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.
STEM vs WATT: side by side
| STEM (Stem, Inc.) | WATT (Energous Corporation) | |
|---|---|---|
| 1-year return | -64.9% | +46.6% |
| 5-year return | -98.9% | -99.2% |
| Volatility (ann.) | 129.9% | 117.2% |
| Beta vs S&P 500 | 2.49 | 1.35 |
| Max drawdown (3Y) | -95.5% | -95.3% |
| Market cap | $0.1B | $0.1B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | STEM | WATT |
|---|---|---|
| 2022 | -52.9% | -33.1% |
| 2023 | -56.6% | -89.1% |
| 2024 | -84.5% | -44.8% |
| 2025 | +24.8% | -86.8% |
| 2026 | -62.1% | +196.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are STEM and WATT good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between STEM and WATT?
As of 2026-08-27, the correlation of weekly returns between STEM and WATT is 0.51 over 3 years, 0.29 over 1 year and 0.49 over 5 years.
Is WATT a good diversifier for STEM?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 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.
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Related comparisons
Hubs: STEM correlations · WATT correlations
