BDCZ vs NMFC: Correlation
Measured on weekly returns over the past three years, ETRACS MarketVector Business Development Companies Liquid (BDCZ) and New Mountain Finance Corporation (NMFC) carry a correlation of 0.85, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and NMFC?
Across a 3-year window, the weekly returns of BDCZ and NMFC correlate at 0.85, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.89 over 1 year against 0.85 over 3. Stretching to 5 years gives 0.82, with an annualized covariance of 268.1 %².
Among the 49 assets we track against BDCZ, NMFC ranks #4 by 3-year correlation. The trailing year gives BDCZ the advantage: -4.0% versus -16.1%, a 12.1-point spread.
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 NMFC: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | NMFC (New Mountain Finance Corporation) | |
|---|---|---|
| 1-year return | -4.0% | -16.1% |
| 5-year return | +29.0% | +1.4% |
| Volatility (ann.) | 16.0% | 19.7% |
| Beta vs S&P 500 | 0.58 | 0.53 |
| Max drawdown (3Y) | -20.8% | -30.6% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 15.98% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | NMFC |
|---|---|---|
| 2022 | -9.1% | -0.6% |
| 2023 | +25.3% | +15.8% |
| 2024 | +12.2% | -0.9% |
| 2025 | -3.7% | -7.2% |
| 2026 | +0.4% | -10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and NMFC good diversifiers for each other?
No: a correlation of 0.85 means BDCZ and NMFC tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between BDCZ and NMFC?
Using weekly returns as of 2026-08-27: 0.85 over 3 years, with 0.89 over the last year and 0.82 over 5 years.
Is NMFC a good diversifier for BDCZ?
No: a correlation of 0.85 means BDCZ and NMFC tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.85 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-nmfc.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-nmfc/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BDCZ correlations · NMFC correlations
