BDCZ vs PSEC: Correlation
ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Prospect Capital Corporation - Closed End Fund (PSEC) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and PSEC?
On 3 years of weekly data the BDCZ/PSEC correlation comes out at 0.60, strong. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. The 5-year figure is 0.67, and annualized covariance runs at 304.4 %².
Within BDCZ's tracked universe of 49 assets, PSEC comes in at #31 by 3-year correlation. Twelve-month performance is nearly a tie, at -4.0% for BDCZ and -5.8% for PSEC. Risk is not evenly split, since PSEC carries 2.0 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 PSEC: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | PSEC (Prospect Capital Corporation - Closed End Fund) | |
|---|---|---|
| 1-year return | -4.0% | -5.8% |
| 5-year return | +29.0% | -45.5% |
| Volatility (ann.) | 16.0% | 31.6% |
| Beta vs S&P 500 | 0.58 | 0.59 |
| Max drawdown (3Y) | -20.8% | -50.5% |
| Market cap | – | $1.2B |
| P/E (trailing) | – | 38.0 |
| Dividend yield | 0.00% | 25.97% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | PSEC |
|---|---|---|
| 2022 | -9.1% | -8.6% |
| 2023 | +25.3% | -4.1% |
| 2024 | +12.2% | -18.2% |
| 2025 | -3.7% | -28.9% |
| 2026 | +0.4% | -1.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and PSEC good diversifiers for each other?
To a limited degree. At 0.60 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 PSEC?
The BDCZ/PSEC correlation stands at 0.60 on a 3-year window (1 year: 0.56, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is PSEC a good diversifier for BDCZ?
To a limited degree. At 0.60 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 0.60 mean?
On the −1 to +1 scale, 0.60 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-psec.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-psec/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BDCZ correlations · PSEC correlations
