^SOX vs. ARM
^SOX (PHLX Semiconductor Index) is an index, while ARM (Arm Holdings plc American Depositary Shares) is a stock. Over the past year, ^SOX returned 146.42% vs 134.37% for ARM. A 0.68 correlation means they provide meaningful diversification when combined.
Performance
^SOX vs. ARM - Performance Comparison
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Returns By Period
In the year-to-date period, ^SOX achieves a 78.70% return, which is significantly lower than ARM's 197.19% return.
^SOX
- 1D
- -1.93%
- 1M
- 7.49%
- YTD
- 78.70%
- 6M
- 71.69%
- 1Y
- 146.42%
- 3Y*
- 53.13%
- 5Y*
- 31.69%
- 10Y*
- 33.59%
ARM
- 1D
- -6.22%
- 1M
- 52.32%
- YTD
- 197.19%
- 6M
- 128.89%
- 1Y
- 134.37%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
^SOX vs. ARM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
^SOX PHLX Semiconductor Index | 78.70% | 42.23% | 19.27% | 17.27% |
ARM Arm Holdings plc American Depositary Shares | 197.19% | -11.39% | 64.16% | 33.95% |
Correlation
The correlation between ^SOX and ARM is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Sep 14, 2023 | 0.68 |
The correlation between ^SOX and ARM has been stable across timeframes, ranging from 0.62 to 0.68 - a consistent structural relationship.
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Return for Risk
^SOX vs. ARM — Risk / Return Rank
^SOX
ARM
^SOX vs. ARM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for PHLX Semiconductor Index (^SOX) and Arm Holdings plc American Depositary Shares (ARM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ^SOX | ARM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.07 | ||
| Sortino ratioReturn per unit of downside risk | +1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.35 | +0.23 |
| Calmar ratioReturn relative to maximum drawdown | 9.41 | 3.26 | +6.15 |
| Martin ratioReturn relative to average drawdown | 34.91 | 6.43 | +28.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ^SOX | ARM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.09 | 2.02 | +2.07 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.99 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.41 | 1.19 | -0.78 |
Drawdowns
^SOX vs. ARM - Drawdown Comparison
The maximum ^SOX drawdown since its inception was -87.15%, which is greater than ARM's maximum drawdown of -53.97%. Use the drawdown chart below to compare losses from any high point for ^SOX and ARM.
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Drawdown Indicators
| ^SOX | ARM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -87.15% | -53.97% | -33.18% |
Max Drawdown (1Y)Largest decline over 1 year | -15.65% | -41.47% | +25.82% |
Max Drawdown (3Y)Largest decline over 3 years | -39.66% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -46.47% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -46.47% | — | — |
Current DrawdownCurrent decline from peak | -9.05% | -21.12% | +12.07% |
Average DrawdownAverage peak-to-trough decline | -39.46% | -21.35% | -18.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.21% | 20.98% | -16.77% |
Volatility
^SOX vs. ARM - Volatility Comparison
The current volatility for PHLX Semiconductor Index (^SOX) is 17.47%, while Arm Holdings plc American Depositary Shares (ARM) has a volatility of 34.89%. This indicates that ^SOX experiences smaller price fluctuations and is considered to be less risky than ARM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ^SOX | ARM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 17.47% | 34.89% | -17.42% |
Volatility (6M)Calculated over the trailing 6-month period | 29.69% | 55.98% | -26.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.02% | 67.05% | -31.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.82% | 76.09% | -39.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.10% | 76.09% | -41.99% |
Frequently Asked Questions
^SOX and ARM have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARM has higher volatility (34.89%) compared to ^SOX (17.47%). In terms of maximum drawdown, ^SOX dropped -87.15% vs ARM's -53.97%.
^SOX currently has the higher Sharpe Ratio (4.09 vs 2.02), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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