GSBD vs PSEC: Correlation
Measured on weekly returns over the past three years, Goldman Sachs BDC, Inc. (GSBD) and Prospect Capital Corporation - Closed End Fund (PSEC) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GSBD and PSEC?
On 3 years of weekly data the GSBD/PSEC correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. The 5-year figure is 0.61, and annualized covariance runs at 368.4 %².
By 3-year correlation, PSEC places #7 of the 17 assets tracked against GSBD. On 12-month performance GSBD holds a 10.1-point edge, +4.3% against -5.8%. Risk is not evenly split, since PSEC carries 1.5 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.
GSBD vs PSEC: side by side
| GSBD (Goldman Sachs BDC, Inc.) | PSEC (Prospect Capital Corporation - Closed End Fund) | |
|---|---|---|
| 1-year return | +4.3% | -5.8% |
| 5-year return | +1.8% | -45.5% |
| Volatility (ann.) | 20.9% | 31.6% |
| Beta vs S&P 500 | 0.62 | 0.59 |
| Max drawdown (3Y) | -29.6% | -50.5% |
| Market cap | $1.1B | $1.2B |
| P/E (trailing) | 19.1 | 38.0 |
| Dividend yield | 12.77% | 25.97% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | GSBD | PSEC |
|---|---|---|
| 2022 | -20.1% | -8.6% |
| 2023 | +21.0% | -4.1% |
| 2024 | -6.2% | -18.2% |
| 2025 | -8.8% | -28.9% |
| 2026 | +17.4% | -1.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GSBD and PSEC good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between GSBD and PSEC?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.51 over the last year and 0.61 over 5 years.
Is PSEC a good diversifier for GSBD?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/gsbd-vs-psec.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/gsbd-vs-psec/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: GSBD correlations · PSEC correlations
