NMFC vs TCPC: Correlation
New Mountain Finance Corporation (NMFC) and BlackRock TCP Capital Corp. - Closed End Fund (TCPC) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NMFC and TCPC?
Over the past 3 years, NMFC and TCPC moved with a correlation of 0.78, which is strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 511.0 %².
In NMFC's tracked universe of 22 assets, TCPC sits right near the top at #3. Over the last 12 months NMFC came out ahead by 14.6 percentage points (-16.1% against -30.7%). Risk is not evenly split, since TCPC carries 1.7 times the volatility of the other side.
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.
NMFC vs TCPC: side by side
| NMFC (New Mountain Finance Corporation) | TCPC (BlackRock TCP Capital Corp. - Closed End Fund) | |
|---|---|---|
| 1-year return | -16.1% | -30.7% |
| 5-year return | +1.4% | -42.1% |
| Volatility (ann.) | 19.7% | 33.1% |
| Beta vs S&P 500 | 0.53 | 0.94 |
| Max drawdown (3Y) | -30.6% | -60.8% |
| Market cap | $0.7B | $0.3B |
| P/E (trailing) | – | – |
| Dividend yield | 15.98% | 20.34% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NMFC | TCPC |
|---|---|---|
| 2022 | -0.6% | +5.6% |
| 2023 | +15.8% | +3.2% |
| 2024 | -0.9% | -12.3% |
| 2025 | -7.2% | -26.2% |
| 2026 | -10.9% | -16.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NMFC and TCPC good diversifiers for each other?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NMFC and TCPC?
As of 2026-08-27, the correlation of weekly returns between NMFC and TCPC is 0.78 over 3 years, 0.82 over 1 year and 0.76 over 5 years.
Is TCPC a good diversifier for NMFC?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.78 mean?
On the −1 to +1 scale, 0.78 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.
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Related comparisons
Hubs: NMFC correlations · TCPC correlations
