FSK vs PSBD: Correlation
FS KKR Capital Corp. (FSK) and Palmer Square Capital BDC Inc. (PSBD) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FSK and PSBD?
On 3 years of weekly data the FSK/PSBD correlation comes out at 0.55, moderate. The past 12 months show a tighter link (0.67) than the 3-year average (0.55). The 5-year figure is n/a, and annualized covariance runs at 276.8 %².
Within FSK's tracked universe of 17 assets, PSBD comes in at #10 by 3-year correlation. Twelve-month performance is nearly a tie, at -19.1% for FSK and -14.3% for PSBD. Note the risk asymmetry: FSK runs 1.5 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.
FSK vs PSBD: side by side
| FSK (FS KKR Capital Corp.) | PSBD (Palmer Square Capital BDC Inc.) | |
|---|---|---|
| 1-year return | -19.1% | -14.3% |
| 5-year return | +10.8% | n/a |
| Volatility (ann.) | 26.7% | 17.8% |
| Beta vs S&P 500 | 0.63 | 0.46 |
| Max drawdown (3Y) | -51.0% | -28.9% |
| Market cap | $3.4B | $0.3B |
| P/E (trailing) | – | – |
| Dividend yield | 17.68% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FSK | PSBD |
|---|---|---|
| 2022 | -4.7% | – |
| 2023 | +33.0% | – |
| 2024 | +25.7% | – |
| 2025 | -20.4% | -9.0% |
| 2026 | -9.9% | -9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FSK and PSBD good diversifiers for each other?
Only partially. A correlation of 0.55 means FSK and PSBD 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 FSK and PSBD?
The FSK/PSBD correlation stands at 0.55 on a 3-year window (1 year: 0.67, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is PSBD a good diversifier for FSK?
Only partially. A correlation of 0.55 means FSK and PSBD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 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/fsk-vs-psbd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fsk-vs-psbd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FSK correlations · PSBD correlations
