BBDC vs NMFC: Correlation
How closely do Barings BDC, Inc. (BBDC) and New Mountain Finance Corporation (NMFC) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BBDC and NMFC?
On 3 years of weekly data the BBDC/NMFC correlation comes out at 0.75, strong. Recent behaviour matches the longer record: 0.85 over 1 year against 0.75 over 3. The 5-year figure is 0.69, and annualized covariance runs at 288.1 %².
In BBDC's tracked universe of 12 assets, NMFC sits right near the top at #2. The last year tells two different stories: BBDC led by 23.9 percentage points, +7.8% for BBDC against -16.1% for NMFC.
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.
BBDC vs NMFC: side by side
| BBDC (Barings BDC, Inc.) | NMFC (New Mountain Finance Corporation) | |
|---|---|---|
| 1-year return | +7.8% | -16.1% |
| 5-year return | +50.4% | +1.4% |
| Volatility (ann.) | 19.5% | 19.7% |
| Beta vs S&P 500 | 0.60 | 0.53 |
| Max drawdown (3Y) | -24.5% | -30.6% |
| Market cap | $1.0B | $0.7B |
| P/E (trailing) | 11.4 | – |
| Dividend yield | 11.12% | 15.98% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BBDC | NMFC |
|---|---|---|
| 2022 | -18.6% | -0.6% |
| 2023 | +18.5% | +15.8% |
| 2024 | +23.9% | -0.9% |
| 2025 | +8.8% | -7.2% |
| 2026 | +8.6% | -10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BBDC and NMFC good diversifiers for each other?
To a limited degree. At 0.75 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 BBDC and NMFC?
The BBDC/NMFC correlation stands at 0.75 on a 3-year window (1 year: 0.85, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is NMFC a good diversifier for BBDC?
To a limited degree. At 0.75 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 0.75 mean?
A reading of 0.75 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bbdc-vs-nmfc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bbdc-vs-nmfc/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BBDC correlations · NMFC correlations
