ARE vs SMHB: Correlation
Measured on weekly returns over the past three years, Alexandria Real Estate Equities (ARE) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARE and SMHB?
Across a 3-year window, the weekly returns of ARE and SMHB correlate at 0.63, strong. The link has loosened recently: the 1-year correlation (0.51) runs below the 3-year figure (0.63). Stretching to 5 years gives 0.64, with an annualized covariance of 944.6 %².
Among the 34 assets we track against ARE, SMHB ranks #5 by 3-year correlation. The last year tells two different stories: SMHB led by 39.5 percentage points, -32.1% for ARE against +7.4% for SMHB.
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.
ARE vs SMHB: side by side
| ARE (Alexandria Real Estate Equities) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | -32.1% | +7.4% |
| 5-year return | -68.3% | -13.5% |
| Volatility (ann.) | 38.3% | 39.3% |
| Beta vs S&P 500 | 0.91 | 1.42 |
| Max drawdown (3Y) | -65.6% | -45.0% |
| Market cap | $9.0B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.57% | – |
| Sector / category | Real Estate | US Listed |
Year-by-year returns
| Year | ARE | SMHB |
|---|---|---|
| 2022 | -32.6% | -36.0% |
| 2023 | -9.1% | +36.0% |
| 2024 | -19.4% | -15.8% |
| 2025 | -46.6% | -7.7% |
| 2026 | +9.9% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARE and SMHB good diversifiers for each other?
Only partially. A correlation of 0.63 means ARE and SMHB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ARE and SMHB?
The ARE/SMHB correlation stands at 0.63 on a 3-year window (1 year: 0.51, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is SMHB a good diversifier for ARE?
Only partially. A correlation of 0.63 means ARE and SMHB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 mean?
A reading of 0.63 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/are-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/are-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARE correlations · SMHB correlations
