BGH vs WDI: Correlation
Barings Global Short Duration High Yield Fund (BGH) and Western Asset Diversified Income Fund (WDI) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BGH and WDI?
Across a 3-year window, the weekly returns of BGH and WDI correlate at 0.72, strong. The past 12 months show a weaker link (0.54) than the 3-year average (0.72). Stretching to 5 years gives 0.71, with an annualized covariance of 110.8 %².
By 3-year correlation, WDI places #5 of the 13 assets tracked against BGH. Twelve-month performance is nearly a tie, at -2.8% for BGH and -2.3% for WDI.
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.
BGH vs WDI: side by side
| BGH (Barings Global Short Duration High Yield Fund) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | -2.8% | -2.3% |
| 5-year return | +37.9% | +14.7% |
| Volatility (ann.) | 13.2% | 11.7% |
| Beta vs S&P 500 | 0.54 | 0.46 |
| Max drawdown (3Y) | -16.9% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | 14.2 | 9.3 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BGH | WDI |
|---|---|---|
| 2022 | -19.9% | -23.3% |
| 2023 | +18.2% | +25.1% |
| 2024 | +27.3% | +13.9% |
| 2025 | +8.5% | +10.7% |
| 2026 | +1.0% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BGH and WDI good diversifiers for each other?
Only partially. A correlation of 0.72 means BGH and WDI 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 BGH and WDI?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.54 over the last year and 0.71 over 5 years.
Is WDI a good diversifier for BGH?
Only partially. A correlation of 0.72 means BGH and WDI 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?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bgh-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bgh-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BGH correlations · WDI correlations
