BTZ vs WDI: Correlation
Measured on weekly returns over the past three years, BlackRock Credit Allocation Income Trust (BTZ) and Western Asset Diversified Income Fund (WDI) 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 BTZ and WDI?
Over the past 3 years, BTZ and WDI moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 99.5 %².
Among the 25 assets we track against BTZ, WDI ranks #6 by 3-year correlation. Twelve-month performance is nearly a tie, at +1.6% for BTZ and -2.3% for WDI.
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 WDI: side by side
| BTZ (BlackRock Credit Allocation Income Trust) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | +1.6% | -2.3% |
| 5-year return | +5.4% | +14.7% |
| Volatility (ann.) | 11.5% | 11.7% |
| Beta vs S&P 500 | 0.44 | 0.46 |
| Max drawdown (3Y) | -9.3% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | 9.2 | 9.3 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BTZ | WDI |
|---|---|---|
| 2022 | -27.1% | -23.3% |
| 2023 | +12.8% | +25.1% |
| 2024 | +11.3% | +13.9% |
| 2025 | +13.7% | +10.7% |
| 2026 | +0.1% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTZ and WDI good diversifiers for each other?
To a limited degree. At 0.74 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 WDI?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.71 over the last year and 0.70 over 5 years.
Is WDI a good diversifier for BTZ?
To a limited degree. At 0.74 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 0.74 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/btz-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/btz-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BTZ correlations · WDI correlations
