BTZ vs FNGD: Correlation
Measured on weekly returns over the past three years, BlackRock Credit Allocation Income Trust (BTZ) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) carry a correlation of -0.37, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BTZ and FNGD?
On 3 years of weekly data the BTZ/FNGD correlation comes out at -0.37, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.50) runs below the 3-year figure (-0.37). The 5-year figure is -0.42, and annualized covariance runs at -321.7 %².
Out of 25 assets tracked against BTZ, FNGD lands near the bottom at #23. Correlation aside, the last 12 months split them widely, with BTZ ahead by 57.3 points (+1.6% versus -55.7%). Risk is not evenly split, since FNGD carries 6.6 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.
BTZ vs FNGD: side by side
| BTZ (BlackRock Credit Allocation Income Trust) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +1.6% | -55.7% |
| 5-year return | +5.4% | -99.4% |
| Volatility (ann.) | 11.5% | 75.7% |
| Beta vs S&P 500 | 0.44 | -4.54 |
| Max drawdown (3Y) | -9.3% | -97.6% |
| Market cap | – | – |
| P/E (trailing) | 9.2 | 20.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BTZ | FNGD |
|---|---|---|
| 2022 | -27.1% | +52.2% |
| 2023 | +12.8% | -90.1% |
| 2024 | +11.3% | -76.6% |
| 2025 | +13.7% | -61.4% |
| 2026 | +0.1% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTZ and FNGD good diversifiers for each other?
Yes. With a correlation of -0.37, BTZ and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between BTZ and FNGD?
The BTZ/FNGD correlation stands at -0.37 on a 3-year window (1 year: -0.50, 5 years: -0.42), computed from weekly returns as of 2026-08-27.
Is FNGD a good diversifier for BTZ?
Yes. With a correlation of -0.37, BTZ and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.37 mean?
A reading of -0.37 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: BTZ correlations · FNGD correlations
