BLW vs BTZ: Correlation
Blackrock Limited Duration Income Trust (BLW) and BlackRock Credit Allocation Income Trust (BTZ) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BLW and BTZ?
On 3 years of weekly data the BLW/BTZ correlation comes out at 0.73, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. The 5-year figure is 0.72, and annualized covariance runs at 82.5 %².
Within BLW's tracked universe of 17 assets, BTZ comes in at #5 by 3-year correlation. Their 12-month results are close: -0.2% for BLW 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.
BLW vs BTZ: side by side
| BLW (Blackrock Limited Duration Income Trust) | BTZ (BlackRock Credit Allocation Income Trust) | |
|---|---|---|
| 1-year return | -0.2% | +1.6% |
| 5-year return | +16.7% | +5.4% |
| Volatility (ann.) | 9.8% | 11.5% |
| Beta vs S&P 500 | 0.38 | 0.44 |
| Max drawdown (3Y) | -11.2% | -9.3% |
| Market cap | $0.5B | – |
| P/E (trailing) | 10.4 | 9.2 |
| Dividend yield | 10.69% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BLW | BTZ |
|---|---|---|
| 2022 | -15.9% | -27.1% |
| 2023 | +17.3% | +12.8% |
| 2024 | +11.1% | +11.3% |
| 2025 | +7.1% | +13.7% |
| 2026 | -0.8% | +0.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BLW and BTZ good diversifiers for each other?
To a limited degree. At 0.73 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 BLW and BTZ?
The BLW/BTZ correlation stands at 0.73 on a 3-year window (1 year: 0.70, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is BTZ a good diversifier for BLW?
To a limited degree. At 0.73 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 0.73 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/blw-vs-btz.json
Markdown for the live badge, attribution link included:
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Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BLW correlations · BTZ correlations
