RAIL vs SCD: Correlation
How closely do Freightcar America, Inc. (RAIL) and LMP Capital and Income Fund Inc. (SCD) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RAIL and SCD?
Across a 3-year window, the weekly returns of RAIL and SCD correlate at 0.40, moderate. Little has changed lately, as the 1-year reading of 0.40 lands near the 3-year figure. Stretching to 5 years gives 0.38, with an annualized covariance of 518.9 %².
Among the 11 assets we track against RAIL, SCD ranks #4 by 3-year correlation. The last year tells two different stories: SCD led by 27.0 percentage points, -16.1% for RAIL against +10.9% for SCD. Note the risk asymmetry: RAIL runs 4.3 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.
RAIL vs SCD: side by side
| RAIL (Freightcar America, Inc.) | SCD (LMP Capital and Income Fund Inc.) | |
|---|---|---|
| 1-year return | -16.1% | +10.9% |
| 5-year return | +36.6% | +68.6% |
| Volatility (ann.) | 75.3% | 17.4% |
| Beta vs S&P 500 | 1.84 | 0.81 |
| Max drawdown (3Y) | -71.7% | -21.8% |
| Market cap | $0.2B | $0.4B |
| P/E (trailing) | – | 5.1 |
| Dividend yield | 0.00% | 9.25% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RAIL | SCD |
|---|---|---|
| 2022 | -13.3% | -14.0% |
| 2023 | -15.6% | +27.9% |
| 2024 | +231.9% | +33.7% |
| 2025 | +23.5% | -5.7% |
| 2026 | -34.6% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RAIL and SCD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between RAIL and SCD?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.40 over the last year and 0.38 over 5 years.
Is SCD a good diversifier for RAIL?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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/rail-vs-scd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/rail-vs-scd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: RAIL correlations · SCD correlations
