MERC vs SMHB: Correlation
Mercer International Inc. (MERC) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MERC and SMHB?
Across a 3-year window, the weekly returns of MERC and SMHB correlate at 0.42, moderate. The link has loosened recently: the 1-year correlation (0.30) runs below the 3-year figure (0.42). Stretching to 5 years gives 0.39, with an annualized covariance of 1042.9 %².
Within MERC's tracked universe of 11 assets, SMHB comes in at #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SMHB outperformed by 95.4 percentage points (-88.0% for MERC against +7.4% for SMHB). Risk is not evenly split, since MERC carries 1.6 times the volatility of the other side.
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.
MERC vs SMHB: side by side
| MERC (Mercer International Inc.) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | -88.0% | +7.4% |
| 5-year return | -96.1% | -13.5% |
| Volatility (ann.) | 63.1% | 39.3% |
| Beta vs S&P 500 | 1.38 | 1.42 |
| Max drawdown (3Y) | -96.2% | -45.0% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MERC | SMHB |
|---|---|---|
| 2022 | -0.6% | -36.0% |
| 2023 | -15.7% | +36.0% |
| 2024 | -28.7% | -15.8% |
| 2025 | -68.5% | -7.7% |
| 2026 | -80.3% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MERC and SMHB good diversifiers for each other?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MERC and SMHB?
As of 2026-08-27, the correlation of weekly returns between MERC and SMHB is 0.42 over 3 years, 0.30 over 1 year and 0.39 over 5 years.
Is SMHB a good diversifier for MERC?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/merc-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/merc-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MERC correlations · SMHB correlations
