NFJ vs SCD: Correlation
Measured on weekly returns over the past three years, Virtus Dividend, Interest & Premium Strategy Fund (NFJ) and LMP Capital and Income Fund Inc. (SCD) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NFJ and SCD?
On 3 years of weekly data the NFJ/SCD correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. The 5-year figure is 0.77, and annualized covariance runs at 172.6 %².
Among the 34 assets we track against NFJ, SCD ranks #9 by 3-year correlation. The last year tells two different stories: NFJ led by 20.1 percentage points, +31.0% for NFJ against +10.9% for SCD.
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.
NFJ vs SCD: side by side
| NFJ (Virtus Dividend, Interest & Premium Strategy Fund) | SCD (LMP Capital and Income Fund Inc.) | |
|---|---|---|
| 1-year return | +31.0% | +10.9% |
| 5-year return | +50.8% | +68.6% |
| Volatility (ann.) | 13.8% | 17.4% |
| Beta vs S&P 500 | 0.73 | 0.81 |
| Max drawdown (3Y) | -17.0% | -21.8% |
| Market cap | $1.5B | $0.4B |
| P/E (trailing) | 9.8 | 5.1 |
| Dividend yield | 7.83% | 9.25% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NFJ | SCD |
|---|---|---|
| 2022 | -23.9% | -14.0% |
| 2023 | +21.3% | +27.9% |
| 2024 | +10.0% | +33.7% |
| 2025 | +12.4% | -5.7% |
| 2026 | +26.1% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NFJ and SCD good diversifiers for each other?
Only partially. A correlation of 0.72 means NFJ and SCD 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 NFJ and SCD?
As of 2026-08-27, the correlation of weekly returns between NFJ and SCD is 0.72 over 3 years, 0.66 over 1 year and 0.77 over 5 years.
Is SCD a good diversifier for NFJ?
Only partially. A correlation of 0.72 means NFJ and SCD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 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/nfj-vs-scd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nfj-vs-scd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NFJ correlations · SCD correlations
