HD vs SMID: Correlation
Measured on weekly returns over the past three years, Home Depot (The) (HD) and Smith-Midland Corporation (SMID) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and SMID?
Across a 3-year window, the weekly returns of HD and SMID correlate at 0.44, moderate. The past 12 months show a weaker link (0.33) than the 3-year average (0.44). Stretching to 5 years gives 0.28, with an annualized covariance of 627.9 %².
Within HD's tracked universe of 54 assets, SMID comes in at #35 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months HD outperformed by 21.9 percentage points (-17.4% for HD against -39.3% for SMID). One caveat on sizing: SMID is 2.6 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.
HD vs SMID: side by side
| HD (Home Depot (The)) | SMID (Smith-Midland Corporation) | |
|---|---|---|
| 1-year return | -17.4% | -39.3% |
| 5-year return | +13.8% | +32.1% |
| Volatility (ann.) | 23.6% | 60.2% |
| Beta vs S&P 500 | 0.87 | 1.58 |
| Max drawdown (3Y) | -28.8% | -50.2% |
| Market cap | $327.9B | $0.1B |
| P/E (trailing) | 23.4 | 17.4 |
| Dividend yield | 1.38% | 0.00% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | HD | SMID |
|---|---|---|
| 2022 | -22.0% | -56.4% |
| 2023 | +12.8% | +92.7% |
| 2024 | +15.0% | +12.6% |
| 2025 | -9.3% | -18.3% |
| 2026 | -3.1% | -31.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and SMID good diversifiers for each other?
Reasonably. At 0.44, HD and SMID keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HD and SMID?
As of 2026-08-27, the correlation of weekly returns between HD and SMID is 0.44 over 3 years, 0.33 over 1 year and 0.28 over 5 years.
Is SMID a good diversifier for HD?
Reasonably. At 0.44, HD and SMID keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 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/hd-vs-smid.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hd-vs-smid/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: HD correlations · SMID correlations
