EDF vs VLT: Correlation
How closely do Virtus Stone Harbor Emerging Markets Income Fund (EDF) and Invesco High Income Trust II (VLT) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EDF and VLT?
On 3 years of weekly data the EDF/VLT correlation comes out at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.53) sits close to the 3-year figure. The 5-year figure is 0.61, and annualized covariance runs at 121.1 %².
Within EDF's tracked universe of 11 assets, VLT comes in at #5 by 3-year correlation. The last year tells two different stories: EDF led by 16.7 percentage points, +15.4% for EDF against -1.3% for VLT. One caveat on sizing: EDF is 2.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
EDF vs VLT: side by side
| EDF (Virtus Stone Harbor Emerging Markets Income Fund) | VLT (Invesco High Income Trust II) | |
|---|---|---|
| 1-year return | +15.4% | -1.3% |
| 5-year return | +26.6% | +12.4% |
| Volatility (ann.) | 20.9% | 10.0% |
| Beta vs S&P 500 | 0.52 | 0.47 |
| Max drawdown (3Y) | -23.4% | -13.4% |
| Market cap | $0.2B | – |
| P/E (trailing) | 4.6 | 13.9 |
| Dividend yield | 0.00% | 11.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EDF | VLT |
|---|---|---|
| 2022 | -28.0% | -20.9% |
| 2023 | +21.6% | +13.1% |
| 2024 | +25.5% | +17.3% |
| 2025 | +22.2% | +13.2% |
| 2026 | +14.5% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDF and VLT good diversifiers for each other?
To a limited degree. At 0.58 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 EDF and VLT?
The EDF/VLT correlation stands at 0.58 on a 3-year window (1 year: 0.53, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is VLT a good diversifier for EDF?
To a limited degree. At 0.58 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 0.58 mean?
On the −1 to +1 scale, 0.58 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/edf-vs-vlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/edf-vs-vlt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EDF correlations · VLT correlations
