FNGD vs MSM: Correlation
Measured on weekly returns over the past three years, MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) and MSC Industrial Direct Company, Inc. (MSM) carry a correlation of -0.21, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FNGD and MSM?
Over the past 3 years, FNGD and MSM moved with a correlation of -0.21, which is negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at 0.08 versus -0.21 over 3 years. Over 5 years the correlation is -0.32, and the annualized covariance of weekly returns is -408.6 %².
Within FNGD's tracked universe of 1743 assets, MSM comes in at #127 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MSM outperformed by 93.8 percentage points (-55.7% for FNGD against +38.1% for MSM). Note the risk asymmetry: FNGD runs 3.0 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.
FNGD vs MSM: side by side
| FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | MSM (MSC Industrial Direct Company, Inc.) | |
|---|---|---|
| 1-year return | -55.7% | +38.1% |
| 5-year return | -99.4% | +73.8% |
| Volatility (ann.) | 75.7% | 25.3% |
| Beta vs S&P 500 | -4.54 | 0.78 |
| Max drawdown (3Y) | -97.6% | -29.3% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | 29.6 |
| Dividend yield | 0.00% | 2.84% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FNGD | MSM |
|---|---|---|
| 2022 | +52.2% | +0.9% |
| 2023 | -90.1% | +28.5% |
| 2024 | -76.6% | -23.4% |
| 2025 | -61.4% | +17.4% |
| 2026 | -49.5% | +49.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FNGD and MSM good diversifiers for each other?
Yes. With a correlation of -0.21, FNGD and MSM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FNGD and MSM?
As of 2026-08-27, the correlation of weekly returns between FNGD and MSM is -0.21 over 3 years, 0.08 over 1 year and -0.32 over 5 years.
Is MSM a good diversifier for FNGD?
Yes. With a correlation of -0.21, FNGD and MSM have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.21 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
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Related comparisons
Hubs: FNGD correlations · MSM correlations
