NSC vs SCHD: Correlation
How closely do Norfolk Southern (NSC) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NSC and SCHD?
Across a 3-year window, the weekly returns of NSC and SCHD correlate at 0.64, strong. The past 12 months show a weaker link (0.51) than the 3-year average (0.64). Stretching to 5 years gives 0.64, with an annualized covariance of 180.0 %².
Among the 32 assets we track against NSC, SCHD ranks #4 by 3-year correlation. Neither side won the trailing year by much: +30.0% against +29.6%. Across three years, the rolling one-year figure varied moderately, from 0.44 to 0.74. Risk is not evenly split, since NSC carries 1.7 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.
NSC vs SCHD: side by side
| NSC (Norfolk Southern) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +30.0% | +29.6% |
| 5-year return | +49.6% | +60.9% |
| Volatility (ann.) | 22.0% | 12.9% |
| Beta vs S&P 500 | 0.69 | 0.52 |
| Max drawdown (3Y) | -25.1% | -16.1% |
| Market cap | $78.1B | – |
| P/E (trailing) | 30.1 | – |
| Dividend yield | 1.53% | 3.13% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $104.2B |
| Sector / category | Industrials | ETF · Dividend |
SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Year-by-year returns
| Year | NSC | SCHD |
|---|---|---|
| 2022 | -15.6% | -3.3% |
| 2023 | -1.6% | +4.5% |
| 2024 | +1.6% | +11.7% |
| 2025 | +25.6% | +4.3% |
| 2026 | +22.0% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NSC and SCHD good diversifiers for each other?
Only partially. A correlation of 0.64 means NSC and SCHD 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 NSC and SCHD?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.51 over the last year and 0.64 over 5 years.
Is SCHD a good diversifier for NSC?
Only partially. A correlation of 0.64 means NSC and SCHD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
On the −1 to +1 scale, 0.64 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/nsc-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nsc-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NSC correlations · SCHD correlations
