NCDL vs PSBD: Correlation
Measured on weekly returns over the past three years, Nuveen Churchill Direct Lending Corp. (NCDL) and Palmer Square Capital BDC Inc. (PSBD) 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 NCDL and PSBD?
On 3 years of weekly data the NCDL/PSBD correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 201.1 %².
Among the 16 assets we track against NCDL, PSBD ranks #6 by 3-year correlation. Twelve-month performance is nearly a tie, at -11.6% for NCDL and -14.3% for PSBD.
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.
NCDL vs PSBD: side by side
| NCDL (Nuveen Churchill Direct Lending Corp.) | PSBD (Palmer Square Capital BDC Inc.) | |
|---|---|---|
| 1-year return | -11.6% | -14.3% |
| 5-year return | n/a | n/a |
| Volatility (ann.) | 20.2% | 17.8% |
| Beta vs S&P 500 | 0.48 | 0.46 |
| Max drawdown (3Y) | -22.3% | -28.9% |
| Market cap | $0.6B | $0.3B |
| P/E (trailing) | 13.1 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Are NCDL and PSBD 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 NCDL and PSBD?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.61 over the last year and n/a over 5 years.
Is PSBD a good diversifier for NCDL?
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
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[](https://www.pairbook.io/pair/ncdl-vs-psbd/)
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Related comparisons
Hubs: NCDL correlations · PSBD correlations
