EMD vs SPY: Correlation
How closely do Western Asset Emerging Markets Debt Fund Inc (EMD) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and SPY?
Over the past 3 years, EMD and SPY moved with a correlation of 0.52, which is moderate. The relationship has been stable: the 1-year correlation (0.59) sits close to the 3-year figure. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 106.1 %².
Out of 15 assets tracked against EMD, SPY lands near the bottom at #11. On 12-month performance SPY holds a 5.6-point edge, +15.0% against +20.6%.
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 SPY: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +15.0% | +20.6% |
| 5-year return | +28.3% | +82.4% |
| Volatility (ann.) | 14.1% | 14.5% |
| Beta vs S&P 500 | 0.51 | 1.00 |
| Max drawdown (3Y) | -13.3% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 6.7 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | EMD | SPY |
|---|---|---|
| 2022 | -20.8% | -18.2% |
| 2023 | +12.3% | +26.2% |
| 2024 | +16.3% | +24.9% |
| 2025 | +23.4% | +17.7% |
| 2026 | +6.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and SPY good diversifiers for each other?
To a limited degree. At 0.52 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 EMD and SPY?
As of 2026-08-27, the correlation of weekly returns between EMD and SPY is 0.52 over 3 years, 0.59 over 1 year and 0.51 over 5 years.
Is SPY a good diversifier for EMD?
To a limited degree. At 0.52 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 0.52 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-spy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/emd-vs-spy/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EMD correlations · SPY correlations
