HRZN vs SCM: Correlation
How closely do Horizon Technology Finance Corporation (HRZN) and Stellus Capital Investment Corporation (SCM) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HRZN and SCM?
On 3 years of weekly data the HRZN/SCM correlation comes out at 0.45, moderate. Recent behaviour matches the longer record: 0.40 over 1 year against 0.45 over 3. The 5-year figure is 0.48, and annualized covariance runs at 363.0 %².
Few assets follow HRZN as closely as SCM, which ranks #3 of 16 tracked partners. Correlation aside, the last 12 months split them widely, with HRZN ahead by 18.1 points (-14.6% versus -32.7%).
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.
HRZN vs SCM: side by side
| HRZN (Horizon Technology Finance Corporation) | SCM (Stellus Capital Investment Corporation) | |
|---|---|---|
| 1-year return | -14.6% | -32.7% |
| 5-year return | -44.7% | +16.7% |
| Volatility (ann.) | 32.9% | 24.4% |
| Beta vs S&P 500 | 0.55 | 0.68 |
| Max drawdown (3Y) | -59.4% | -47.8% |
| Market cap | $0.3B | $0.2B |
| P/E (trailing) | 13.0 | 8.4 |
| Dividend yield | 23.38% | 17.12% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HRZN | SCM |
|---|---|---|
| 2022 | -19.7% | +12.9% |
| 2023 | +27.0% | +8.7% |
| 2024 | -22.9% | +20.3% |
| 2025 | -14.4% | +3.7% |
| 2026 | -14.7% | -26.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HRZN and SCM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between HRZN and SCM?
Using weekly returns as of 2026-08-27: 0.45 over 3 years, with 0.40 over the last year and 0.48 over 5 years.
Is SCM a good diversifier for HRZN?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.45 mean?
A reading of 0.45 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/hrzn-vs-scm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hrzn-vs-scm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: HRZN correlations · SCM correlations
