IVZ vs NFJ: Correlation
Measured on weekly returns over the past three years, Invesco (IVZ) and Virtus Dividend, Interest & Premium Strategy Fund (NFJ) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVZ and NFJ?
Over the past 3 years, IVZ and NFJ moved with a correlation of 0.64, which is strong. The past 12 months show a weaker link (0.52) than the 3-year average (0.64). Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 287.0 %².
By 3-year correlation, NFJ places #13 of the 33 assets tracked against IVZ. Their recent paths diverged sharply: over the last 12 months IVZ outperformed by 24.9 percentage points (+55.9% for IVZ against +31.0% for NFJ). Note the risk asymmetry: IVZ 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.
IVZ vs NFJ: side by side
| IVZ (Invesco) | NFJ (Virtus Dividend, Interest & Premium Strategy Fund) | |
|---|---|---|
| 1-year return | +55.9% | +31.0% |
| 5-year return | +63.7% | +50.8% |
| Volatility (ann.) | 32.6% | 13.8% |
| Beta vs S&P 500 | 1.29 | 0.73 |
| Max drawdown (3Y) | -36.5% | -17.0% |
| Market cap | $14.7B | $1.5B |
| P/E (trailing) | – | 9.8 |
| Dividend yield | 2.58% | 7.83% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | IVZ | NFJ |
|---|---|---|
| 2022 | -18.7% | -23.9% |
| 2023 | +4.2% | +21.3% |
| 2024 | +3.0% | +10.0% |
| 2025 | +56.9% | +12.4% |
| 2026 | +29.7% | +26.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVZ and NFJ good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IVZ and NFJ?
As of 2026-08-27, the correlation of weekly returns between IVZ and NFJ is 0.64 over 3 years, 0.52 over 1 year and 0.68 over 5 years.
Is NFJ a good diversifier for IVZ?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
A reading of 0.64 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/ivz-vs-nfj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ivz-vs-nfj/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IVZ correlations · NFJ correlations
