SEDG vs SHLS: Correlation
SolarEdge Technologies, Inc. (SEDG) and Shoals Technologies Group, Inc. (SHLS) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SEDG and SHLS?
Over the past 3 years, SEDG and SHLS moved with a correlation of 0.51, which is moderate. Little has changed lately, as the 1-year reading of 0.43 lands near the 3-year figure. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 3772.4 %².
Among the 11 assets we track against SEDG, SHLS ranks #5 by 3-year correlation. On 12-month performance SHLS holds a 12.9-point edge, +1.3% against +14.2%.
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.
SEDG vs SHLS: side by side
| SEDG (SolarEdge Technologies, Inc.) | SHLS (Shoals Technologies Group, Inc.) | |
|---|---|---|
| 1-year return | +1.3% | +14.2% |
| 5-year return | -88.7% | -76.8% |
| Volatility (ann.) | 99.4% | 75.0% |
| Beta vs S&P 500 | 0.93 | 1.02 |
| Max drawdown (3Y) | -93.7% | -87.3% |
| Market cap | $2.1B | $1.2B |
| P/E (trailing) | – | 39.1 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SEDG | SHLS |
|---|---|---|
| 2022 | +1.0% | +1.5% |
| 2023 | -67.0% | -37.0% |
| 2024 | -85.5% | -64.4% |
| 2025 | +112.1% | +53.7% |
| 2026 | +16.2% | -12.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SEDG and SHLS good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SEDG and SHLS?
As of 2026-08-27, the correlation of weekly returns between SEDG and SHLS is 0.51 over 3 years, 0.43 over 1 year and 0.51 over 5 years.
Is SHLS a good diversifier for SEDG?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 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/sedg-vs-shls.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/sedg-vs-shls/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SEDG correlations · SHLS correlations
