BDCZ vs CSWC: Correlation
How closely do ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Capital Southwest Corporation (CSWC) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and CSWC?
On 3 years of weekly data the BDCZ/CSWC correlation comes out at 0.79, strong. Recent behaviour matches the longer record: 0.78 over 1 year against 0.79 over 3. The 5-year figure is 0.79, and annualized covariance runs at 254.9 %².
By 3-year correlation, CSWC places #14 of the 49 assets tracked against BDCZ. The last year tells two different stories: CSWC led by 29.5 percentage points, -4.0% for BDCZ against +25.5% for CSWC.
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.
BDCZ vs CSWC: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | CSWC (Capital Southwest Corporation) | |
|---|---|---|
| 1-year return | -4.0% | +25.5% |
| 5-year return | +29.0% | +72.3% |
| Volatility (ann.) | 16.0% | 20.0% |
| Beta vs S&P 500 | 0.58 | 0.64 |
| Max drawdown (3Y) | -20.8% | -27.7% |
| Market cap | – | $1.6B |
| P/E (trailing) | – | 14.0 |
| Dividend yield | 0.00% | 9.20% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | CSWC |
|---|---|---|
| 2022 | -9.1% | -24.4% |
| 2023 | +25.3% | +56.1% |
| 2024 | +12.2% | +2.1% |
| 2025 | -3.7% | +14.3% |
| 2026 | +0.4% | +23.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and CSWC good diversifiers for each other?
To a limited degree. At 0.79 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 BDCZ and CSWC?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.78 over the last year and 0.79 over 5 years.
Is CSWC a good diversifier for BDCZ?
To a limited degree. At 0.79 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 0.79 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/bdcz-vs-cswc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-cswc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BDCZ correlations · CSWC correlations
