ARI vs SMHB: Correlation
Measured on weekly returns over the past three years, Apollo Commercial Real Estate Finance, Inc (ARI) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARI and SMHB?
Across a 3-year window, the weekly returns of ARI and SMHB correlate at 0.66, strong. The link has loosened recently: the 1-year correlation (0.45) runs below the 3-year figure (0.66). Stretching to 5 years gives 0.76, with an annualized covariance of 616.6 %².
Among the 10 assets we track against ARI, SMHB ranks #4 by 3-year correlation. Neither side won the trailing year by much: +11.4% against +7.4%. One caveat on sizing: SMHB is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
ARI vs SMHB: side by side
| ARI (Apollo Commercial Real Estate Finance, Inc) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +11.4% | +7.4% |
| 5-year return | +21.3% | -13.5% |
| Volatility (ann.) | 23.8% | 39.3% |
| Beta vs S&P 500 | 0.64 | 1.42 |
| Max drawdown (3Y) | -24.7% | -45.0% |
| Market cap | $0.9B | – |
| P/E (trailing) | 8.5 | – |
| Dividend yield | 14.68% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARI | SMHB |
|---|---|---|
| 2022 | -7.1% | -36.0% |
| 2023 | +24.5% | +36.0% |
| 2024 | -16.5% | -15.8% |
| 2025 | +23.8% | -7.7% |
| 2026 | +13.3% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARI and SMHB good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARI and SMHB?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.45 over the last year and 0.76 over 5 years.
Is SMHB a good diversifier for ARI?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ari-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ari-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARI correlations · SMHB correlations
