BDCZ vs TCPC: Correlation
Measured on weekly returns over the past three years, ETRACS MarketVector Business Development Companies Liquid (BDCZ) and BlackRock TCP Capital Corp. - Closed End Fund (TCPC) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and TCPC?
Across a 3-year window, the weekly returns of BDCZ and TCPC correlate at 0.78, strong. Little has changed lately, as the 1-year reading of 0.84 lands near the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 414.1 %².
Within BDCZ's tracked universe of 49 assets, TCPC comes in at #18 by 3-year correlation. The last year tells two different stories: BDCZ led by 26.7 percentage points, -4.0% for BDCZ against -30.7% for TCPC. Risk is not evenly split, since TCPC carries 2.1 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 TCPC: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | TCPC (BlackRock TCP Capital Corp. - Closed End Fund) | |
|---|---|---|
| 1-year return | -4.0% | -30.7% |
| 5-year return | +29.0% | -42.1% |
| Volatility (ann.) | 16.0% | 33.1% |
| Beta vs S&P 500 | 0.58 | 0.94 |
| Max drawdown (3Y) | -20.8% | -60.8% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 20.34% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | TCPC |
|---|---|---|
| 2022 | -9.1% | +5.6% |
| 2023 | +25.3% | +3.2% |
| 2024 | +12.2% | -12.3% |
| 2025 | -3.7% | -26.2% |
| 2026 | +0.4% | -16.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and TCPC good diversifiers for each other?
Only partially. A correlation of 0.78 means BDCZ and TCPC 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 TCPC?
The BDCZ/TCPC correlation stands at 0.78 on a 3-year window (1 year: 0.84, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is TCPC a good diversifier for BDCZ?
Only partially. A correlation of 0.78 means BDCZ and TCPC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.78 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.
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Related comparisons
Hubs: BDCZ correlations · TCPC correlations
