KMX vs SMHB: Correlation
Measured on weekly returns over the past three years, CarMax Inc (KMX) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMX and SMHB?
Over the past 3 years, KMX and SMHB moved with a correlation of 0.51, which is moderate. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 837.6 %².
Within KMX's tracked universe of 11 assets, SMHB comes in at #4 by 3-year correlation. The trailing year gives SMHB the advantage: +0.9% versus +7.4%, a 6.5-point spread.
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.
KMX vs SMHB: side by side
| KMX (CarMax Inc) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +0.9% | +7.4% |
| 5-year return | -50.5% | -13.5% |
| Volatility (ann.) | 41.9% | 39.3% |
| Beta vs S&P 500 | 0.94 | 1.42 |
| Max drawdown (3Y) | -65.4% | -45.0% |
| Market cap | – | – |
| P/E (trailing) | 38.9 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KMX | SMHB |
|---|---|---|
| 2022 | -53.2% | -36.0% |
| 2023 | +26.0% | +36.0% |
| 2024 | +6.5% | -15.8% |
| 2025 | -52.7% | -7.7% |
| 2026 | +62.1% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMX and SMHB good diversifiers for each other?
Only partially. A correlation of 0.51 means KMX 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 KMX and SMHB?
The KMX/SMHB correlation stands at 0.51 on a 3-year window (1 year: 0.50, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is SMHB a good diversifier for KMX?
Only partially. A correlation of 0.51 means KMX 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 0.51 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/kmx-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/kmx-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: KMX correlations · SMHB correlations
