BDCZ vs SCM: Correlation
Measured on weekly returns over the past three years, ETRACS MarketVector Business Development Companies Liquid (BDCZ) and Stellus Capital Investment Corporation (SCM) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and SCM?
Over the past 3 years, BDCZ and SCM moved with a correlation of 0.72, which is strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.72 over 3. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 283.5 %².
Within BDCZ's tracked universe of 49 assets, SCM comes in at #23 by 3-year correlation. The last year tells two different stories: BDCZ led by 28.7 percentage points, -4.0% for BDCZ against -32.7% for SCM. Risk is not evenly split, since SCM carries 1.5 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 SCM: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | SCM (Stellus Capital Investment Corporation) | |
|---|---|---|
| 1-year return | -4.0% | -32.7% |
| 5-year return | +29.0% | +16.7% |
| Volatility (ann.) | 16.0% | 24.4% |
| Beta vs S&P 500 | 0.58 | 0.68 |
| Max drawdown (3Y) | -20.8% | -47.8% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 8.4 |
| Dividend yield | 0.00% | 17.12% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | SCM |
|---|---|---|
| 2022 | -9.1% | +12.9% |
| 2023 | +25.3% | +8.7% |
| 2024 | +12.2% | +20.3% |
| 2025 | -3.7% | +3.7% |
| 2026 | +0.4% | -26.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and SCM good diversifiers for each other?
Only partially. A correlation of 0.72 means BDCZ and SCM 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 SCM?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.70 over the last year and 0.70 over 5 years.
Is SCM a good diversifier for BDCZ?
Only partially. A correlation of 0.72 means BDCZ and SCM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 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-scm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-scm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BDCZ correlations · SCM correlations
