BDCZ vs MSDL: Correlation
Measured on weekly returns over the past three years, ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Morgan Stanley Direct Lending Fund (MSDL) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and MSDL?
Across a 3-year window, the weekly returns of BDCZ and MSDL correlate at 0.55, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.81 versus 0.55 over 3 years. Stretching to 5 years gives n/a, with an annualized covariance of 191.3 %².
By 3-year correlation, MSDL places #35 of the 49 assets tracked against BDCZ. Twelve-month performance is nearly a tie, at -4.0% for BDCZ and -2.7% for MSDL.
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 MSDL: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | MSDL (Morgan Stanley Direct Lending Fund) | |
|---|---|---|
| 1-year return | -4.0% | -2.7% |
| 5-year return | +29.0% | n/a |
| Volatility (ann.) | 16.0% | 21.2% |
| Beta vs S&P 500 | 0.58 | 0.57 |
| Max drawdown (3Y) | -20.8% | -29.7% |
| Market cap | – | $1.3B |
| P/E (trailing) | – | 22.2 |
| Dividend yield | 0.00% | 12.45% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | MSDL |
|---|---|---|
| 2022 | -9.1% | – |
| 2023 | +25.3% | – |
| 2024 | +12.2% | – |
| 2025 | -3.7% | -10.9% |
| 2026 | +0.4% | -1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and MSDL good diversifiers for each other?
Only partially. A correlation of 0.55 means BDCZ and MSDL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between BDCZ and MSDL?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.81 over the last year and n/a over 5 years.
Is MSDL a good diversifier for BDCZ?
Only partially. A correlation of 0.55 means BDCZ and MSDL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 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-msdl.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-msdl/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BDCZ correlations · MSDL correlations
