FANG vs SM: Correlation
Measured on weekly returns over the past three years, Diamondback Energy (FANG) and SM Energy Company (SM) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FANG and SM?
On 3 years of weekly data the FANG/SM correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.80 lands near the 3-year figure. The 5-year figure is 0.82, and annualized covariance runs at 1308.0 %².
By 3-year correlation, SM places #9 of the 41 assets tracked against FANG. Their 12-month results are close: +39.6% for FANG against +36.1% for SM.
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.
FANG vs SM: side by side
| FANG (Diamondback Energy) | SM (SM Energy Company) | |
|---|---|---|
| 1-year return | +39.6% | +36.1% |
| 5-year return | +224.9% | +114.6% |
| Volatility (ann.) | 34.1% | 47.6% |
| Beta vs S&P 500 | 0.32 | 0.44 |
| Max drawdown (3Y) | -42.1% | -64.9% |
| Market cap | $56.1B | $8.8B |
| P/E (trailing) | 38.0 | 6.3 |
| Dividend yield | 2.13% | 2.32% |
| Sector / category | Energy | US Listed |
Year-by-year returns
| Year | FANG | SM |
|---|---|---|
| 2022 | +35.3% | +18.6% |
| 2023 | +19.7% | +13.1% |
| 2024 | +10.3% | +1.8% |
| 2025 | -5.6% | -49.7% |
| 2026 | +35.7% | +99.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FANG and SM good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between FANG and SM?
The FANG/SM correlation stands at 0.81 on a 3-year window (1 year: 0.80, 5 years: 0.82), computed from weekly returns as of 2026-08-27.
Is SM a good diversifier for FANG?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.81 mean?
On the −1 to +1 scale, 0.81 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/fang-vs-sm.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fang-vs-sm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FANG correlations · SM correlations
