EMD vs MSD: Correlation
Western Asset Emerging Markets Debt Fund Inc (EMD) and Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) show a strong relationship: their 3-year correlation of weekly returns is 0.75.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and MSD?
On 3 years of weekly data the EMD/MSD correlation comes out at 0.75, strong. Recent behaviour matches the longer record: 0.85 over 1 year against 0.75 over 3. The 5-year figure is 0.75, and annualized covariance runs at 122.0 %².
In EMD's tracked universe of 15 assets, MSD sits right near the top at #3. Over the last 12 months EMD came out ahead by 9.2 percentage points (+15.0% against +5.8%).
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 MSD: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) | |
|---|---|---|
| 1-year return | +15.0% | +5.8% |
| 5-year return | +28.3% | +22.9% |
| Volatility (ann.) | 14.1% | 11.6% |
| Beta vs S&P 500 | 0.51 | 0.40 |
| Max drawdown (3Y) | -13.3% | -12.8% |
| Market cap | – | $0.1B |
| P/E (trailing) | 6.7 | 6.9 |
| Dividend yield | 0.00% | 9.78% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EMD | MSD |
|---|---|---|
| 2022 | -20.8% | -22.1% |
| 2023 | +12.3% | +19.2% |
| 2024 | +16.3% | +24.9% |
| 2025 | +23.4% | +5.6% |
| 2026 | +6.9% | +2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and MSD good diversifiers for each other?
Only partially. A correlation of 0.75 means EMD and MSD 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 EMD and MSD?
As of 2026-08-27, the correlation of weekly returns between EMD and MSD is 0.75 over 3 years, 0.85 over 1 year and 0.75 over 5 years.
Is MSD a good diversifier for EMD?
Only partially. A correlation of 0.75 means EMD and MSD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.75 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/emd-vs-msd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/emd-vs-msd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EMD correlations · MSD correlations
