SEDG vs TAN: Correlation
How closely do SolarEdge Technologies, Inc. (SEDG) and Invesco Solar ETF (TAN) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SEDG and TAN?
Over the past 3 years, SEDG and TAN moved with a correlation of 0.68, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.47 versus 0.68 over 3 years. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 2529.0 %².
TAN is one of the assets that tracks SEDG most closely: it ranks #1 out of the 11 assets we track against SEDG. Their recent paths diverged sharply: over the last 12 months TAN outperformed by 20.1 percentage points (+1.3% for SEDG against +21.4% for TAN). Note the risk asymmetry: SEDG runs 2.7 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.
SEDG vs TAN: side by side
| SEDG (SolarEdge Technologies, Inc.) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +1.3% | +21.4% |
| 5-year return | -88.7% | -41.9% |
| Volatility (ann.) | 99.4% | 37.4% |
| Beta vs S&P 500 | 0.93 | 1.04 |
| Max drawdown (3Y) | -93.7% | -55.4% |
| Market cap | $2.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | SEDG | TAN |
|---|---|---|
| 2022 | +1.0% | -5.2% |
| 2023 | -67.0% | -26.8% |
| 2024 | -85.5% | -37.6% |
| 2025 | +112.1% | +48.3% |
| 2026 | +16.2% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SEDG and TAN good diversifiers for each other?
Only partially. A correlation of 0.68 means SEDG and TAN 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 SEDG and TAN?
As of 2026-08-27, the correlation of weekly returns between SEDG and TAN is 0.68 over 3 years, 0.47 over 1 year and 0.72 over 5 years.
Is TAN a good diversifier for SEDG?
Only partially. A correlation of 0.68 means SEDG and TAN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/sedg-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/sedg-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SEDG correlations · TAN correlations
