LEG vs SMHB: Correlation
How closely do Leggett & Platt, Incorporated (LEG) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LEG and SMHB?
Across a 3-year window, the weekly returns of LEG and SMHB correlate at 0.56, moderate. The link has tightened recently: the 1-year correlation (0.70) runs above the 3-year figure (0.56). Stretching to 5 years gives 0.56, with an annualized covariance of 1071.7 %².
Within LEG's tracked universe of 16 assets, SMHB comes in at #5 by 3-year correlation. On 12-month performance LEG holds a 5.3-point edge, +12.7% against +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.
LEG vs SMHB: side by side
| LEG (Leggett & Platt, Incorporated) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +12.7% | +7.4% |
| 5-year return | -72.6% | -13.5% |
| Volatility (ann.) | 48.5% | 39.3% |
| Beta vs S&P 500 | 1.29 | 1.42 |
| Max drawdown (3Y) | -76.8% | -45.0% |
| Market cap | $1.3B | – |
| P/E (trailing) | 5.9 | – |
| Dividend yield | 2.15% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LEG | SMHB |
|---|---|---|
| 2022 | -17.8% | -36.0% |
| 2023 | -13.5% | +36.0% |
| 2024 | -61.9% | -15.8% |
| 2025 | +17.0% | -7.7% |
| 2026 | +1.2% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LEG and SMHB good diversifiers for each other?
Only partially. A correlation of 0.56 means LEG 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 LEG and SMHB?
The LEG/SMHB correlation stands at 0.56 on a 3-year window (1 year: 0.70, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is SMHB a good diversifier for LEG?
Only partially. A correlation of 0.56 means LEG 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 0.56 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/leg-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/leg-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LEG correlations · SMHB correlations
