MFA vs SMHB: Correlation
MFA Financial, Inc. (MFA) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MFA and SMHB?
On 3 years of weekly data the MFA/SMHB correlation comes out at 0.71, strong. The link has loosened recently: the 1-year correlation (0.57) runs below the 3-year figure (0.71). The 5-year figure is 0.73, and annualized covariance runs at 712.6 %².
Within MFA's tracked universe of 23 assets, SMHB comes in at #5 by 3-year correlation. Their 12-month results are close: +2.8% for MFA against +7.4% for SMHB. Note the risk asymmetry: SMHB runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
MFA vs SMHB: side by side
| MFA (MFA Financial, Inc.) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | +2.8% | +7.4% |
| 5-year return | -8.1% | -13.5% |
| Volatility (ann.) | 25.6% | 39.3% |
| Beta vs S&P 500 | 0.64 | 1.42 |
| Max drawdown (3Y) | -31.6% | -45.0% |
| Market cap | $0.9B | – |
| P/E (trailing) | 8.8 | – |
| Dividend yield | 16.36% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MFA | SMHB |
|---|---|---|
| 2022 | -37.2% | -36.0% |
| 2023 | +30.7% | +36.0% |
| 2024 | +2.6% | -15.8% |
| 2025 | +6.1% | -7.7% |
| 2026 | +2.6% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MFA and SMHB good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between MFA and SMHB?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.57 over the last year and 0.73 over 5 years.
Is SMHB a good diversifier for MFA?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.71 mean?
A reading of 0.71 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/mfa-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mfa-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MFA correlations · SMHB correlations
