BKT vs BTZ: Correlation
Measured on weekly returns over the past three years, BlackRock Income Trust Inc. (The) (BKT) and BlackRock Credit Allocation Income Trust (BTZ) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BKT and BTZ?
Over the past 3 years, BKT and BTZ moved with a correlation of 0.74, which is strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.74 over 3. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 81.7 %².
By 3-year correlation, BTZ places #4 of the 16 assets tracked against BKT. Their 12-month results are close: -3.3% for BKT against +1.6% for BTZ.
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.
BKT vs BTZ: side by side
| BKT (BlackRock Income Trust Inc. (The)) | BTZ (BlackRock Credit Allocation Income Trust) | |
|---|---|---|
| 1-year return | -3.3% | +1.6% |
| 5-year return | -16.5% | +5.4% |
| Volatility (ann.) | 9.7% | 11.5% |
| Beta vs S&P 500 | 0.19 | 0.44 |
| Max drawdown (3Y) | -10.4% | -9.3% |
| Market cap | $0.3B | – |
| P/E (trailing) | 11.0 | 9.2 |
| Dividend yield | 10.17% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BKT | BTZ |
|---|---|---|
| 2022 | -21.6% | -27.1% |
| 2023 | +7.6% | +12.8% |
| 2024 | +3.2% | +11.3% |
| 2025 | +5.0% | +13.7% |
| 2026 | +0.0% | +0.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BKT and BTZ good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BKT and BTZ?
As of 2026-08-27, the correlation of weekly returns between BKT and BTZ is 0.74 over 3 years, 0.74 over 1 year and 0.65 over 5 years.
Is BTZ a good diversifier for BKT?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: BKT correlations · BTZ correlations
