RC vs SMHB: Correlation
How closely do Ready Capital Corporation (RC) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RC and SMHB?
Across a 3-year window, the weekly returns of RC and SMHB correlate at 0.55, moderate. The relationship has been stable: the 1-year correlation (0.54) sits close to the 3-year figure. Stretching to 5 years gives 0.66, with an annualized covariance of 825.0 %².
Few assets follow RC as closely as SMHB, which ranks #3 of 14 tracked partners. Correlation aside, the last 12 months split them widely, with SMHB ahead by 61.4 points (-54.0% versus +7.4%).
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.
RC vs SMHB: side by side
| RC (Ready Capital Corporation) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | -54.0% | +7.4% |
| 5-year return | -78.5% | -13.5% |
| Volatility (ann.) | 38.3% | 39.3% |
| Beta vs S&P 500 | 1.11 | 1.42 |
| Max drawdown (3Y) | -83.7% | -45.0% |
| Market cap | $0.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 8.42% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RC | SMHB |
|---|---|---|
| 2022 | -18.3% | -36.0% |
| 2023 | +5.9% | +36.0% |
| 2024 | -23.5% | -15.8% |
| 2025 | -65.0% | -7.7% |
| 2026 | -14.1% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RC and SMHB good diversifiers for each other?
To a limited degree. At 0.55 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 RC and SMHB?
As of 2026-08-27, the correlation of weekly returns between RC and SMHB is 0.55 over 3 years, 0.54 over 1 year and 0.66 over 5 years.
Is SMHB a good diversifier for RC?
To a limited degree. At 0.55 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 0.55 mean?
On the −1 to +1 scale, 0.55 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/rc-vs-smhb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/rc-vs-smhb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: RC correlations · SMHB correlations
