CSWC vs PSEC: Correlation
Capital Southwest Corporation (CSWC) and Prospect Capital Corporation - Closed End Fund (PSEC) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CSWC and PSEC?
On 3 years of weekly data the CSWC/PSEC correlation comes out at 0.53, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.37 versus 0.53 over 3 years. The 5-year figure is 0.55, and annualized covariance runs at 331.8 %².
Within CSWC's tracked universe of 17 assets, PSEC comes in at #8 by 3-year correlation. Correlation aside, the last 12 months split them widely, with CSWC ahead by 31.3 points (+25.5% versus -5.8%). Risk is not evenly split, since PSEC carries 1.6 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.
CSWC vs PSEC: side by side
| CSWC (Capital Southwest Corporation) | PSEC (Prospect Capital Corporation - Closed End Fund) | |
|---|---|---|
| 1-year return | +25.5% | -5.8% |
| 5-year return | +72.3% | -45.5% |
| Volatility (ann.) | 20.0% | 31.6% |
| Beta vs S&P 500 | 0.64 | 0.59 |
| Max drawdown (3Y) | -27.7% | -50.5% |
| Market cap | $1.6B | $1.2B |
| P/E (trailing) | 14.0 | 38.0 |
| Dividend yield | 9.20% | 25.97% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CSWC | PSEC |
|---|---|---|
| 2022 | -24.4% | -8.6% |
| 2023 | +56.1% | -4.1% |
| 2024 | +2.1% | -18.2% |
| 2025 | +14.3% | -28.9% |
| 2026 | +23.1% | -1.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CSWC and PSEC good diversifiers for each other?
To a limited degree. At 0.53 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 CSWC and PSEC?
The CSWC/PSEC correlation stands at 0.53 on a 3-year window (1 year: 0.37, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is PSEC a good diversifier for CSWC?
To a limited degree. At 0.53 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 0.53 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/cswc-vs-psec.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cswc-vs-psec/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CSWC correlations · PSEC correlations
