SHY vs SM: Correlation
iShares 1-3 Year Treasury Bond ETF (SHY) and SM Energy Company (SM) show a negative relationship: their 3-year correlation of weekly returns is -0.27.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHY and SM?
Across a 3-year window, the weekly returns of SHY and SM correlate at -0.27, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.53) runs below the 3-year figure (-0.27). Stretching to 5 years gives -0.13, with an annualized covariance of -20.0 %².
By 3-year correlation, SM places #49 of the 62 assets tracked against SHY. The last year tells two different stories: SM led by 33.6 percentage points, +2.5% for SHY against +36.1% for SM. One caveat on sizing: SM is 29.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
SHY vs SM: side by side
| SHY (iShares 1-3 Year Treasury Bond ETF) | SM (SM Energy Company) | |
|---|---|---|
| 1-year return | +2.5% | +36.1% |
| 5-year return | +9.6% | +114.6% |
| Volatility (ann.) | 1.6% | 47.6% |
| Beta vs S&P 500 | 0.00 | 0.44 |
| Max drawdown (3Y) | -1.0% | -64.9% |
| Market cap | – | $8.8B |
| P/E (trailing) | – | 6.3 |
| Dividend yield | 3.65% | 2.32% |
| Expense ratio | 0.15% | – |
| Assets under management | $25.1B | – |
| Sector / category | ETF · Bonds | US Listed |
SHY is a Short Government fund from iShares: $25.1B under management, a 0.15% expense ratio, a 3.65% trailing dividend yield.
Year-by-year returns
| Year | SHY | SM |
|---|---|---|
| 2022 | -3.9% | +18.6% |
| 2023 | +4.2% | +13.1% |
| 2024 | +3.9% | +1.8% |
| 2025 | +5.0% | -49.7% |
| 2026 | +1.1% | +99.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHY and SM good diversifiers for each other?
By historical standards, yes. A correlation of -0.27 means the two rarely move for the same reasons.
FAQ
What is the correlation between SHY and SM?
Using weekly returns as of 2026-08-27: -0.27 over 3 years, with -0.53 over the last year and -0.13 over 5 years.
Is SM a good diversifier for SHY?
By historical standards, yes. A correlation of -0.27 means the two rarely move for the same reasons.
What does a correlation of -0.27 mean?
On the −1 to +1 scale, -0.27 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/shy-vs-sm.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/shy-vs-sm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SHY correlations · SM correlations
