GDL vs NFJ: Correlation
How closely do GDL Fund, The (GDL) and Virtus Dividend, Interest & Premium Strategy Fund (NFJ) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GDL and NFJ?
Across a 3-year window, the weekly returns of GDL and NFJ correlate at 0.58, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.30 versus 0.58 over 3 years. Stretching to 5 years gives 0.51, with an annualized covariance of 48.4 %².
NFJ is one of the assets that tracks GDL most closely: it ranks #2 out of the 10 assets we track against GDL. Their recent paths diverged sharply: over the last 12 months NFJ outperformed by 26.6 percentage points (+4.4% for GDL against +31.0% for NFJ). Risk is not evenly split, since NFJ carries 2.3 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.
GDL vs NFJ: side by side
| GDL (GDL Fund, The) | NFJ (Virtus Dividend, Interest & Premium Strategy Fund) | |
|---|---|---|
| 1-year return | +4.4% | +31.0% |
| 5-year return | +23.0% | +50.8% |
| Volatility (ann.) | 6.0% | 13.8% |
| Beta vs S&P 500 | 0.20 | 0.73 |
| Max drawdown (3Y) | -6.0% | -17.0% |
| Market cap | – | $1.5B |
| P/E (trailing) | 12.0 | 9.8 |
| Dividend yield | 0.00% | 7.83% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | GDL | NFJ |
|---|---|---|
| 2022 | -6.9% | -23.9% |
| 2023 | +9.0% | +21.3% |
| 2024 | +5.9% | +10.0% |
| 2025 | +11.8% | +12.4% |
| 2026 | +1.8% | +26.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GDL and NFJ good diversifiers for each other?
Only partially. A correlation of 0.58 means GDL and NFJ 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 GDL and NFJ?
As of 2026-08-27, the correlation of weekly returns between GDL and NFJ is 0.58 over 3 years, 0.30 over 1 year and 0.51 over 5 years.
Is NFJ a good diversifier for GDL?
Only partially. A correlation of 0.58 means GDL and NFJ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 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/gdl-vs-nfj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/gdl-vs-nfj/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: GDL correlations · NFJ correlations
