RITM vs SMHB: Correlation
Rithm Capital Corp. (RITM) and ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) 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 RITM and SMHB?
Across a 3-year window, the weekly returns of RITM and SMHB correlate at 0.66, strong. The past 12 months show a weaker link (0.53) than the 3-year average (0.66). Stretching to 5 years gives 0.77, with an annualized covariance of 539.5 %².
Among the 17 assets we track against RITM, SMHB ranks #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SMHB ahead by 18.0 points (-10.6% versus +7.4%). Risk is not evenly split, since SMHB carries 1.9 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.
RITM vs SMHB: side by side
| RITM (Rithm Capital Corp.) | SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | |
|---|---|---|
| 1-year return | -10.6% | +7.4% |
| 5-year return | +53.6% | -13.5% |
| Volatility (ann.) | 20.9% | 39.3% |
| Beta vs S&P 500 | 0.67 | 1.42 |
| Max drawdown (3Y) | -27.3% | -45.0% |
| Market cap | $5.6B | – |
| P/E (trailing) | 16.7 | – |
| Dividend yield | 9.92% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RITM | SMHB |
|---|---|---|
| 2022 | -14.4% | -36.0% |
| 2023 | +45.6% | +36.0% |
| 2024 | +11.1% | -15.8% |
| 2025 | +10.1% | -7.7% |
| 2026 | -3.1% | +22.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RITM and SMHB good diversifiers for each other?
Only partially. A correlation of 0.66 means RITM and SMHB 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 RITM and SMHB?
The RITM/SMHB correlation stands at 0.66 on a 3-year window (1 year: 0.53, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is SMHB a good diversifier for RITM?
Only partially. A correlation of 0.66 means RITM and SMHB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.66 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.
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Related comparisons
Hubs: RITM correlations · SMHB correlations
