FLC vs HYG: Correlation
Measured on weekly returns over the past three years, Flaherty & Crumrine Total Return Fund Inc (FLC) and iShares iBoxx High Yield Corporate Bond ETF (HYG) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FLC and HYG?
Over the past 3 years, FLC and HYG moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.66 versus 0.81 over 3 years. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 43.3 %².
In FLC's tracked universe of 22 assets, HYG sits right near the top at #1. Neither side won the trailing year by much: +3.8% against +4.6%. Note the risk asymmetry: FLC runs 2.4 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.
FLC vs HYG: side by side
| FLC (Flaherty & Crumrine Total Return Fund Inc) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +3.8% | +4.6% |
| 5-year return | -0.2% | +19.9% |
| Volatility (ann.) | 11.3% | 4.7% |
| Beta vs S&P 500 | 0.48 | 0.22 |
| Max drawdown (3Y) | -10.5% | -4.6% |
| Market cap | $0.2B | – |
| P/E (trailing) | 9.3 | – |
| Dividend yield | 7.25% | 5.94% |
| Expense ratio | – | 0.49% |
| Assets under management | – | $17.1B |
| Sector / category | US Listed | ETF · Bonds |
HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | FLC | HYG |
|---|---|---|
| 2022 | -25.1% | -11.0% |
| 2023 | -0.8% | +11.5% |
| 2024 | +23.1% | +8.0% |
| 2025 | +12.4% | +8.6% |
| 2026 | -0.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FLC and HYG good diversifiers for each other?
No. With a correlation of 0.81, FLC and HYG move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between FLC and HYG?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.66 over the last year and 0.65 over 5 years.
Is HYG a good diversifier for FLC?
No. With a correlation of 0.81, FLC and HYG move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 mean?
A reading of 0.81 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
$ curl https://www.pairbook.io/api/v1/pairs/flc-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/flc-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FLC correlations · HYG correlations
