NCV vs NFJ: Correlation
How closely do Virtus Convertible & Income Fund (NCV) and Virtus Dividend, Interest & Premium Strategy Fund (NFJ) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NCV and NFJ?
On 3 years of weekly data the NCV/NFJ correlation comes out at 0.76, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.76 over 3. The 5-year figure is 0.80, and annualized covariance runs at 192.2 %².
Within NCV's tracked universe of 16 assets, NFJ comes in at #5 by 3-year correlation. The trailing year gives NFJ the advantage: +26.0% versus +31.0%, a 5.0-point spread.
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.
NCV vs NFJ: side by side
| NCV (Virtus Convertible & Income Fund) | NFJ (Virtus Dividend, Interest & Premium Strategy Fund) | |
|---|---|---|
| 1-year return | +26.0% | +31.0% |
| 5-year return | +22.6% | +50.8% |
| Volatility (ann.) | 18.3% | 13.8% |
| Beta vs S&P 500 | 0.88 | 0.73 |
| Max drawdown (3Y) | -17.8% | -17.0% |
| Market cap | – | $1.5B |
| P/E (trailing) | 4.5 | 9.8 |
| Dividend yield | 9.84% | 7.83% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NCV | NFJ |
|---|---|---|
| 2022 | -33.9% | -23.9% |
| 2023 | +12.7% | +21.3% |
| 2024 | +16.2% | +10.0% |
| 2025 | +22.6% | +12.4% |
| 2026 | +18.2% | +26.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NCV and NFJ good diversifiers for each other?
Only partially. A correlation of 0.76 means NCV 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 NCV and NFJ?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.74 over the last year and 0.80 over 5 years.
Is NFJ a good diversifier for NCV?
Only partially. A correlation of 0.76 means NCV 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 0.76 mean?
On the −1 to +1 scale, 0.76 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/ncv-vs-nfj.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ncv-vs-nfj/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NCV correlations · NFJ correlations
