SMSI vs VELO: Correlation
Measured on weekly returns over the past three years, Smith Micro Software, Inc. (SMSI) and Velo3D, Inc. (VELO) carry a correlation of 0.29, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMSI and VELO?
Over the past 3 years, SMSI and VELO moved with a correlation of 0.29, which is weak. The relationship has been stable: the 1-year correlation (0.20) sits close to the 3-year figure. Over 5 years the correlation is 0.26, and the annualized covariance of weekly returns is 6950.9 %².
Among the 11 assets we track against SMSI, VELO ranks #6 by 3-year correlation. The last year tells two different stories: VELO led by 200.8 percentage points, -18.9% for SMSI against +181.9% for VELO. One caveat on sizing: VELO is 2.6 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.
SMSI vs VELO: side by side
| SMSI (Smith Micro Software, Inc.) | VELO (Velo3D, Inc.) | |
|---|---|---|
| 1-year return | -18.9% | +181.9% |
| 5-year return | -98.5% | -99.8% |
| Volatility (ann.) | 94.7% | 249.0% |
| Beta vs S&P 500 | 0.95 | -2.66 |
| Max drawdown (3Y) | -96.8% | -99.8% |
| Market cap | – | $0.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SMSI | VELO |
|---|---|---|
| 2022 | -57.3% | -77.1% |
| 2023 | -60.5% | -77.8% |
| 2024 | -80.3% | -95.2% |
| 2025 | -58.8% | +35.7% |
| 2026 | +9.6% | -6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMSI and VELO good diversifiers for each other?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SMSI and VELO?
The SMSI/VELO correlation stands at 0.29 on a 3-year window (1 year: 0.20, 5 years: 0.26), computed from weekly returns as of 2026-08-27.
Is VELO a good diversifier for SMSI?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.29 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/smsi-vs-velo.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/smsi-vs-velo/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SMSI correlations · VELO correlations
