BTZ vs WIA: Correlation
Measured on weekly returns over the past three years, BlackRock Credit Allocation Income Trust (BTZ) and Western Asset Inflation-Linked Income Fund (WIA) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BTZ and WIA?
On 3 years of weekly data the BTZ/WIA correlation comes out at 0.67, strong. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. The 5-year figure is 0.64, and annualized covariance runs at 55.6 %².
By 3-year correlation, WIA places #14 of the 25 assets tracked against BTZ. Twelve-month performance is nearly a tie, at +1.6% for BTZ and +2.1% for WIA. Note the risk asymmetry: BTZ runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 WIA: side by side
| BTZ (BlackRock Credit Allocation Income Trust) | WIA (Western Asset Inflation-Linked Income Fund) | |
|---|---|---|
| 1-year return | +1.6% | +2.1% |
| 5-year return | +5.4% | -3.9% |
| Volatility (ann.) | 11.5% | 7.2% |
| Beta vs S&P 500 | 0.44 | 0.20 |
| Max drawdown (3Y) | -9.3% | -6.4% |
| Market cap | – | $0.2B |
| P/E (trailing) | 9.2 | 14.0 |
| Dividend yield | 0.00% | 7.83% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BTZ | WIA |
|---|---|---|
| 2022 | -27.1% | -25.8% |
| 2023 | +12.8% | +5.0% |
| 2024 | +11.3% | +6.1% |
| 2025 | +13.7% | +11.4% |
| 2026 | +0.1% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTZ and WIA good diversifiers for each other?
Only partially. A correlation of 0.67 means BTZ and WIA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between BTZ and WIA?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.73 over the last year and 0.64 over 5 years.
Is WIA a good diversifier for BTZ?
Only partially. A correlation of 0.67 means BTZ and WIA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
A reading of 0.67 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: BTZ correlations · WIA correlations
