BDCZ vs HRZN: Correlation
How closely do ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Horizon Technology Finance Corporation (HRZN) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and HRZN?
Across a 3-year window, the weekly returns of BDCZ and HRZN correlate at 0.45, moderate. The past 12 months show a weaker link (0.34) than the 3-year average (0.45). Stretching to 5 years gives 0.53, with an annualized covariance of 236.1 %².
Within BDCZ's tracked universe of 49 assets, HRZN comes in at #42 by 3-year correlation. The trailing year gives BDCZ the advantage: -4.0% versus -14.6%, a 10.6-point spread. Risk is not evenly split, since HRZN carries 2.1 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.
BDCZ vs HRZN: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | HRZN (Horizon Technology Finance Corporation) | |
|---|---|---|
| 1-year return | -4.0% | -14.6% |
| 5-year return | +29.0% | -44.7% |
| Volatility (ann.) | 16.0% | 32.9% |
| Beta vs S&P 500 | 0.58 | 0.55 |
| Max drawdown (3Y) | -20.8% | -59.4% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 13.0 |
| Dividend yield | 0.00% | 23.38% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | HRZN |
|---|---|---|
| 2022 | -9.1% | -19.7% |
| 2023 | +25.3% | +27.0% |
| 2024 | +12.2% | -22.9% |
| 2025 | -3.7% | -14.4% |
| 2026 | +0.4% | -14.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and HRZN good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BDCZ and HRZN?
The BDCZ/HRZN correlation stands at 0.45 on a 3-year window (1 year: 0.34, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is HRZN a good diversifier for BDCZ?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.45 mean?
On the −1 to +1 scale, 0.45 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/bdcz-vs-hrzn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bdcz-vs-hrzn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BDCZ correlations · HRZN correlations
