BTZ vs PAI: Correlation
BlackRock Credit Allocation Income Trust (BTZ) and Western Asset Investment Grade Income Fund Inc. (PAI) show a strong relationship: their 3-year correlation of weekly returns is 0.67.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BTZ and PAI?
Over the past 3 years, BTZ and PAI moved with a correlation of 0.67, which is strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.67 over 3. Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 76.4 %².
By 3-year correlation, PAI places #13 of the 25 assets tracked against BTZ. Their 12-month results are close: +1.6% for BTZ against -0.6% for PAI.
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 PAI: side by side
| BTZ (BlackRock Credit Allocation Income Trust) | PAI (Western Asset Investment Grade Income Fund Inc.) | |
|---|---|---|
| 1-year return | +1.6% | -0.6% |
| 5-year return | +5.4% | -4.0% |
| Volatility (ann.) | 11.5% | 10.0% |
| Beta vs S&P 500 | 0.44 | 0.28 |
| Max drawdown (3Y) | -9.3% | -8.9% |
| Market cap | – | $0.1B |
| P/E (trailing) | 9.2 | 12.9 |
| Dividend yield | 0.00% | 2.65% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BTZ | PAI |
|---|---|---|
| 2022 | -27.1% | -22.5% |
| 2023 | +12.8% | +9.1% |
| 2024 | +11.3% | +9.2% |
| 2025 | +13.7% | +5.4% |
| 2026 | +0.1% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTZ and PAI good diversifiers for each other?
To a limited degree. At 0.67 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 BTZ and PAI?
As of 2026-08-27, the correlation of weekly returns between BTZ and PAI is 0.67 over 3 years, 0.74 over 1 year and 0.68 over 5 years.
Is PAI a good diversifier for BTZ?
To a limited degree. At 0.67 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 0.67 mean?
On the −1 to +1 scale, 0.67 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: BTZ correlations · PAI correlations
