ERC vs WDI: Correlation
Measured on weekly returns over the past three years, Allspring Multi-Sector Income Fund (ERC) and Western Asset Diversified Income Fund (WDI) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERC and WDI?
On 3 years of weekly data the ERC/WDI correlation comes out at 0.76, strong. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. The 5-year figure is 0.65, and annualized covariance runs at 89.6 %².
Within ERC's tracked universe of 22 assets, WDI comes in at #4 by 3-year correlation. Over the last 12 months ERC came out ahead by 9.0 percentage points (+6.7% against -2.3%).
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.
ERC vs WDI: side by side
| ERC (Allspring Multi-Sector Income Fund) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | +6.7% | -2.3% |
| 5-year return | +11.4% | +14.7% |
| Volatility (ann.) | 10.1% | 11.7% |
| Beta vs S&P 500 | 0.41 | 0.46 |
| Max drawdown (3Y) | -9.8% | -14.1% |
| Market cap | $0.3B | $0.7B |
| P/E (trailing) | 9.7 | 9.3 |
| Dividend yield | 9.33% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ERC | WDI |
|---|---|---|
| 2022 | -17.8% | -23.3% |
| 2023 | +4.9% | +25.1% |
| 2024 | +6.1% | +13.9% |
| 2025 | +11.1% | +10.7% |
| 2026 | +5.8% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ERC and WDI good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ERC and WDI?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.74 over the last year and 0.65 over 5 years.
Is WDI a good diversifier for ERC?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 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/erc-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/erc-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ERC correlations · WDI correlations
