BDCZ vs PSBD: Correlation
Measured on weekly returns over the past three years, ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Palmer Square Capital BDC Inc. (PSBD) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and PSBD?
On 3 years of weekly data the BDCZ/PSBD correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 163.4 %².
Within BDCZ's tracked universe of 49 assets, PSBD comes in at #34 by 3-year correlation. The trailing year gives BDCZ the advantage: -4.0% versus -14.3%, a 10.3-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 PSBD: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | PSBD (Palmer Square Capital BDC Inc.) | |
|---|---|---|
| 1-year return | -4.0% | -14.3% |
| 5-year return | +29.0% | n/a |
| Volatility (ann.) | 16.0% | 17.8% |
| Beta vs S&P 500 | 0.58 | 0.46 |
| Max drawdown (3Y) | -20.8% | -28.9% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | PSBD |
|---|---|---|
| 2022 | -9.1% | – |
| 2023 | +25.3% | – |
| 2024 | +12.2% | – |
| 2025 | -3.7% | -9.0% |
| 2026 | +0.4% | -9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and PSBD good diversifiers for each other?
Only partially. A correlation of 0.56 means BDCZ and PSBD 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 PSBD?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.66 over the last year and n/a over 5 years.
Is PSBD a good diversifier for BDCZ?
Only partially. A correlation of 0.56 means BDCZ and PSBD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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-psbd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bdcz-vs-psbd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BDCZ correlations · PSBD correlations
