KREF vs SMHB: Correlation
How closely do KKR Real Estate Finance Trust Inc. (KREF) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KREF and SMHB?
Over the past 3 years, KREF and SMHB moved with a correlation of 0.61, which is strong. The past 12 months show a weaker link (0.45) than the 3-year average (0.61). Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 776.6 %².
In KREF's tracked universe of 13 assets, SMHB sits right near the top at #3. Correlation aside, the last 12 months split them widely, with SMHB ahead by 17.4 points (-10.0% versus +7.4%).
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.
KREF vs SMHB: side by side
| KREF (KKR Real Estate Finance Trust Inc.) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | -10.0% | +7.4% |
| 5-year return | -38.4% | -13.5% |
| Volatility (ann.) | 32.2% | 39.3% |
| Beta vs S&P 500 | 0.66 | 1.42 |
| Max drawdown (3Y) | -44.9% | -45.0% |
| Market cap | $0.5B | – |
| P/E (trailing) | – | – |
| Dividend yield | 11.26% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KREF | SMHB |
|---|---|---|
| 2022 | -25.9% | -36.0% |
| 2023 | +9.2% | +36.0% |
| 2024 | -15.8% | -15.8% |
| 2025 | -9.3% | -7.7% |
| 2026 | -2.2% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KREF and SMHB good diversifiers for each other?
Only partially. A correlation of 0.61 means KREF 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 KREF and SMHB?
As of 2026-08-27, the correlation of weekly returns between KREF and SMHB is 0.61 over 3 years, 0.45 over 1 year and 0.69 over 5 years.
Is SMHB a good diversifier for KREF?
Only partially. A correlation of 0.61 means KREF 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 0.61 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/kref-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/kref-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: KREF correlations · SMHB correlations
