EMD vs FNGD: Correlation
Measured on weekly returns over the past three years, Western Asset Emerging Markets Debt Fund Inc (EMD) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) carry a correlation of -0.33, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and FNGD?
Across a 3-year window, the weekly returns of EMD and FNGD correlate at -0.33, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.40 over 1 year against -0.33 over 3. Stretching to 5 years gives -0.35, with an annualized covariance of -353.1 %².
Out of 15 assets tracked against EMD, FNGD lands near the bottom at #13. Their recent paths diverged sharply: over the last 12 months EMD outperformed by 70.7 percentage points (+15.0% for EMD against -55.7% for FNGD). Note the risk asymmetry: FNGD runs 5.4 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
EMD vs FNGD: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +15.0% | -55.7% |
| 5-year return | +28.3% | -99.4% |
| Volatility (ann.) | 14.1% | 75.7% |
| Beta vs S&P 500 | 0.51 | -4.54 |
| Max drawdown (3Y) | -13.3% | -97.6% |
| Market cap | – | – |
| P/E (trailing) | 6.7 | 20.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EMD | FNGD |
|---|---|---|
| 2022 | -20.8% | +52.2% |
| 2023 | +12.3% | -90.1% |
| 2024 | +16.3% | -76.6% |
| 2025 | +23.4% | -61.4% |
| 2026 | +6.9% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and FNGD good diversifiers for each other?
Yes. With a correlation of -0.33, EMD and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between EMD and FNGD?
The EMD/FNGD correlation stands at -0.33 on a 3-year window (1 year: -0.40, 5 years: -0.35), computed from weekly returns as of 2026-08-27.
Is FNGD a good diversifier for EMD?
Yes. With a correlation of -0.33, EMD and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.33 mean?
A reading of -0.33 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
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[](https://www.pairbook.io/pair/emd-vs-fngd/)
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Related comparisons
Hubs: EMD correlations · FNGD correlations
