MCN vs NFJ: Correlation
Measured on weekly returns over the past three years, XAI Madison Equity Premium Income Fund (MCN) and Virtus Dividend, Interest & Premium Strategy Fund (NFJ) 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 MCN and NFJ?
Across a 3-year window, the weekly returns of MCN and NFJ correlate at 0.56, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.56 over 3. Stretching to 5 years gives 0.57, with an annualized covariance of 107.3 %².
Within MCN's tracked universe of 13 assets, NFJ comes in at #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NFJ outperformed by 29.2 percentage points (+1.8% for MCN against +31.0% for NFJ).
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.
MCN vs NFJ: side by side
| MCN (XAI Madison Equity Premium Income Fund) | NFJ (Virtus Dividend, Interest & Premium Strategy Fund) | |
|---|---|---|
| 1-year return | +1.8% | +31.0% |
| 5-year return | +17.0% | +50.8% |
| Volatility (ann.) | 13.9% | 13.8% |
| Beta vs S&P 500 | 0.46 | 0.73 |
| Max drawdown (3Y) | -24.5% | -17.0% |
| Market cap | $0.1B | $1.5B |
| P/E (trailing) | 18.2 | 9.8 |
| Dividend yield | 12.74% | 7.83% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MCN | NFJ |
|---|---|---|
| 2022 | +6.3% | -23.9% |
| 2023 | +7.0% | +21.3% |
| 2024 | -1.5% | +10.0% |
| 2025 | +0.7% | +12.4% |
| 2026 | +2.2% | +26.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCN and NFJ good diversifiers for each other?
Only partially. A correlation of 0.56 means MCN 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 MCN and NFJ?
As of 2026-08-27, the correlation of weekly returns between MCN and NFJ is 0.56 over 3 years, 0.51 over 1 year and 0.57 over 5 years.
Is NFJ a good diversifier for MCN?
Only partially. A correlation of 0.56 means MCN 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 0.56 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/mcn-vs-nfj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mcn-vs-nfj/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MCN correlations · NFJ correlations
