EDD vs EMD: Correlation
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD) and Western Asset Emerging Markets Debt Fund Inc (EMD) show a strong relationship: their 3-year correlation of weekly returns is 0.70.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EDD and EMD?
Across a 3-year window, the weekly returns of EDD and EMD correlate at 0.70, strong. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. Stretching to 5 years gives 0.69, with an annualized covariance of 162.2 %².
EMD is one of the assets that tracks EDD most closely: it ranks #2 out of the 10 assets we track against EDD. Over the last 12 months EDD came out ahead by 10.2 percentage points (+25.2% against +15.0%).
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.
EDD vs EMD: side by side
| EDD (Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.) | EMD (Western Asset Emerging Markets Debt Fund Inc) | |
|---|---|---|
| 1-year return | +25.2% | +15.0% |
| 5-year return | +51.4% | +28.3% |
| Volatility (ann.) | 16.4% | 14.1% |
| Beta vs S&P 500 | 0.52 | 0.51 |
| Max drawdown (3Y) | -17.7% | -13.3% |
| Market cap | – | – |
| P/E (trailing) | 4.9 | 6.7 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EDD | EMD |
|---|---|---|
| 2022 | -14.1% | -20.8% |
| 2023 | +14.1% | +12.3% |
| 2024 | +8.6% | +16.3% |
| 2025 | +32.5% | +23.4% |
| 2026 | +16.8% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDD and EMD good diversifiers for each other?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EDD and EMD?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.78 over the last year and 0.69 over 5 years.
Is EMD a good diversifier for EDD?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.70 mean?
On the −1 to +1 scale, 0.70 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/edd-vs-emd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/edd-vs-emd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EDD correlations · EMD correlations
