ACRE vs SMHB: Correlation
How closely do Ares Commercial Real Estate Corporation (ACRE) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACRE and SMHB?
Over the past 3 years, ACRE and SMHB moved with a correlation of 0.57, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.38 versus 0.57 over 3 years. Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 841.8 %².
Among the 13 assets we track against ACRE, SMHB ranks #4 by 3-year correlation. Over the last 12 months ACRE came out ahead by 6.2 percentage points (+13.6% against +7.4%).
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.
ACRE vs SMHB: side by side
| ACRE (Ares Commercial Real Estate Corporation) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +13.6% | +7.4% |
| 5-year return | -43.9% | -13.5% |
| Volatility (ann.) | 37.4% | 39.3% |
| Beta vs S&P 500 | 0.90 | 1.42 |
| Max drawdown (3Y) | -61.3% | -45.0% |
| Market cap | $0.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 12.96% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ACRE | SMHB |
|---|---|---|
| 2022 | -20.4% | -36.0% |
| 2023 | +15.6% | +36.0% |
| 2024 | -34.0% | -15.8% |
| 2025 | -7.9% | -7.7% |
| 2026 | +3.4% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACRE and SMHB good diversifiers for each other?
To a limited degree. At 0.57 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 ACRE and SMHB?
As of 2026-08-27, the correlation of weekly returns between ACRE and SMHB is 0.57 over 3 years, 0.38 over 1 year and 0.68 over 5 years.
Is SMHB a good diversifier for ACRE?
To a limited degree. At 0.57 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 0.57 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/acre-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/acre-vs-smhb/)
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Related comparisons
Hubs: ACRE correlations · SMHB correlations
