NUE vs STLD: Correlation
Nucor (NUE) and Steel Dynamics (STLD) show a very strong relationship: their 3-year correlation of weekly returns is 0.85.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NUE and STLD?
Over the past 3 years, NUE and STLD moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.83 over 1 year against 0.85 over 3. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 975.9 %².
STLD is one of the assets that tracks NUE most closely: it ranks #1 out of the 34 assets we track against NUE. On 12-month performance STLD holds a 9.7-point edge, +70.1% against +79.8%. The rolling one-year correlation stayed in a tight band between 0.72 and 0.94 over the past three years, which points to a structural rather than episodic relationship.
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.
NUE vs STLD: side by side
| NUE (Nucor) | STLD (Steel Dynamics) | |
|---|---|---|
| 1-year return | +70.1% | +79.8% |
| 5-year return | +124.6% | +262.0% |
| Volatility (ann.) | 33.3% | 34.5% |
| Beta vs S&P 500 | 1.08 | 1.13 |
| Max drawdown (3Y) | -47.8% | -28.7% |
| Market cap | $57.3B | $33.8B |
| P/E (trailing) | 20.1 | 21.4 |
| Dividend yield | 0.88% | 0.87% |
| Sector / category | Materials | Materials |
Year-by-year returns
| Year | NUE | STLD |
|---|---|---|
| 2022 | +17.4% | +60.1% |
| 2023 | +33.8% | +22.8% |
| 2024 | -32.0% | -2.0% |
| 2025 | +42.0% | +50.7% |
| 2026 | +55.6% | +39.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NUE and STLD good diversifiers for each other?
No: a correlation of 0.85 means NUE and STLD tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between NUE and STLD?
As of 2026-08-27, the correlation of weekly returns between NUE and STLD is 0.85 over 3 years, 0.83 over 1 year and 0.86 over 5 years.
Is STLD a good diversifier for NUE?
No: a correlation of 0.85 means NUE and STLD tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.85 mean?
A reading of 0.85 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
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Related comparisons
Hubs: NUE correlations · STLD correlations
