NXT vs TAN: Correlation
Nextpower Inc. (NXT) and Invesco Solar ETF (TAN) show a strong relationship: their 3-year correlation of weekly returns is 0.66.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NXT and TAN?
Over the past 3 years, NXT and TAN moved with a correlation of 0.66, which is strong. Recent behaviour matches the longer record: 0.75 over 1 year against 0.66 over 3. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 1544.3 %².
Few assets follow NXT as closely as TAN, which ranks #2 of 11 tracked partners. On 12-month performance NXT holds a 10.9-point edge, +32.3% against +21.4%. Note the risk asymmetry: NXT runs 1.7 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.
NXT vs TAN: side by side
| NXT (Nextpower Inc.) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +32.3% | +21.4% |
| 5-year return | n/a | -41.9% |
| Volatility (ann.) | 62.6% | 37.4% |
| Beta vs S&P 500 | 1.42 | 1.04 |
| Max drawdown (3Y) | -48.6% | -55.4% |
| Market cap | $13.8B | – |
| P/E (trailing) | 22.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | NXT | TAN |
|---|---|---|
| 2022 | – | -5.2% |
| 2023 | – | -26.8% |
| 2024 | -22.0% | -37.6% |
| 2025 | +138.5% | +48.3% |
| 2026 | +2.8% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NXT and TAN good diversifiers for each other?
To a limited degree. At 0.66 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 NXT and TAN?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.75 over the last year and n/a over 5 years.
Is TAN a good diversifier for NXT?
To a limited degree. At 0.66 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 0.66 mean?
A reading of 0.66 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/nxt-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nxt-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NXT correlations · TAN correlations
