SMHB vs STWD: Correlation
ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) show a strong relationship: their 3-year correlation of weekly returns is 0.77.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMHB and STWD?
Across a 3-year window, the weekly returns of SMHB and STWD correlate at 0.77, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Stretching to 5 years gives 0.84, with an annualized covariance of 583.3 %².
In SMHB's tracked universe of 58 assets, STWD sits right near the top at #1. Their recent paths diverged sharply: over the last 12 months SMHB outperformed by 19.2 percentage points (+7.4% for SMHB against -11.8% for STWD). Note the risk asymmetry: SMHB runs 2.0 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.
SMHB vs STWD: side by side
| SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | +7.4% | -11.8% |
| 5-year return | -13.5% | +0.5% |
| Volatility (ann.) | 39.3% | 19.3% |
| Beta vs S&P 500 | 1.42 | 0.65 |
| Max drawdown (3Y) | -45.0% | -15.8% |
| Market cap | – | $6.1B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | – | 12.07% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SMHB | STWD |
|---|---|---|
| 2022 | -36.0% | -17.3% |
| 2023 | +36.0% | +26.7% |
| 2024 | -15.8% | -0.6% |
| 2025 | -7.7% | +4.9% |
| 2026 | +22.1% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMHB and STWD good diversifiers for each other?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SMHB and STWD?
The SMHB/STWD correlation stands at 0.77 on a 3-year window (1 year: 0.68, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is STWD a good diversifier for SMHB?
To a limited degree. At 0.77 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.77 mean?
On the −1 to +1 scale, 0.77 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/smhb-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/smhb-vs-stwd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMHB correlations · STWD correlations
