SMHB vs VEL: Correlation
Measured on weekly returns over the past three years, ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) and Velocity Financial, Inc. (VEL) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMHB and VEL?
Over the past 3 years, SMHB and VEL moved with a correlation of 0.44, which is moderate. Little has changed lately, as the 1-year reading of 0.42 lands near the 3-year figure. Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 443.2 %².
By 3-year correlation, VEL places #50 of the 58 assets tracked against SMHB. Over the last 12 months SMHB came out ahead by 12.5 percentage points (+7.4% against -5.1%). Risk is not evenly split, since SMHB carries 1.5 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.
SMHB vs VEL: side by side
| SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | VEL (Velocity Financial, Inc.) | |
|---|---|---|
| 1-year return | +7.4% | -5.1% |
| 5-year return | -13.5% | +41.6% |
| Volatility (ann.) | 39.3% | 25.6% |
| Beta vs S&P 500 | 1.42 | 0.42 |
| Max drawdown (3Y) | -45.0% | -22.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 6.4 |
| Dividend yield | – | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SMHB | VEL |
|---|---|---|
| 2022 | -36.0% | -29.6% |
| 2023 | +36.0% | +78.4% |
| 2024 | -15.8% | +13.6% |
| 2025 | -7.7% | +6.1% |
| 2026 | +22.1% | -12.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMHB and VEL good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SMHB and VEL?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.42 over the last year and 0.34 over 5 years.
Is VEL a good diversifier for SMHB?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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-vel.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/smhb-vs-vel/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SMHB correlations · VEL correlations
