SHLS vs TAN: Correlation
Measured on weekly returns over the past three years, Shoals Technologies Group, Inc. (SHLS) and Invesco Solar ETF (TAN) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHLS and TAN?
Across a 3-year window, the weekly returns of SHLS and TAN correlate at 0.61, strong. The link has tightened recently: the 1-year correlation (0.72) runs above the 3-year figure (0.61). Stretching to 5 years gives 0.64, with an annualized covariance of 1714.9 %².
Few assets follow SHLS as closely as TAN, which ranks #2 of 17 tracked partners. The trailing year gives TAN the advantage: +14.2% versus +21.4%, a 7.2-point spread. Risk is not evenly split, since SHLS carries 2.0 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.
SHLS vs TAN: side by side
| SHLS (Shoals Technologies Group, Inc.) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +14.2% | +21.4% |
| 5-year return | -76.8% | -41.9% |
| Volatility (ann.) | 75.0% | 37.4% |
| Beta vs S&P 500 | 1.02 | 1.04 |
| Max drawdown (3Y) | -87.3% | -55.4% |
| Market cap | $1.2B | – |
| P/E (trailing) | 39.1 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | SHLS | TAN |
|---|---|---|
| 2022 | +1.5% | -5.2% |
| 2023 | -37.0% | -26.8% |
| 2024 | -64.4% | -37.6% |
| 2025 | +53.7% | +48.3% |
| 2026 | -12.7% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHLS and TAN good diversifiers for each other?
Only partially. A correlation of 0.61 means SHLS 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 SHLS and TAN?
As of 2026-08-27, the correlation of weekly returns between SHLS and TAN is 0.61 over 3 years, 0.72 over 1 year and 0.64 over 5 years.
Is TAN a good diversifier for SHLS?
Only partially. A correlation of 0.61 means SHLS 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 0.61 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/shls-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/shls-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SHLS correlations · TAN correlations
