GDL vs WDI: Correlation
GDL Fund, The (GDL) and Western Asset Diversified Income Fund (WDI) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GDL and WDI?
Across a 3-year window, the weekly returns of GDL and WDI correlate at 0.56, moderate. The link has loosened recently: the 1-year correlation (0.40) runs below the 3-year figure (0.56). Stretching to 5 years gives 0.50, with an annualized covariance of 39.5 %².
By 3-year correlation, WDI places #5 of the 10 assets tracked against GDL. Over the last 12 months GDL came out ahead by 6.7 percentage points (+4.4% against -2.3%). One caveat on sizing: WDI is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
GDL vs WDI: side by side
| GDL (GDL Fund, The) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | +4.4% | -2.3% |
| 5-year return | +23.0% | +14.7% |
| Volatility (ann.) | 6.0% | 11.7% |
| Beta vs S&P 500 | 0.20 | 0.46 |
| Max drawdown (3Y) | -6.0% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | 12.0 | 9.3 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | GDL | WDI |
|---|---|---|
| 2022 | -6.9% | -23.3% |
| 2023 | +9.0% | +25.1% |
| 2024 | +5.9% | +13.9% |
| 2025 | +11.8% | +10.7% |
| 2026 | +1.8% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GDL and WDI good diversifiers for each other?
To a limited degree. At 0.56 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 GDL and WDI?
The GDL/WDI correlation stands at 0.56 on a 3-year window (1 year: 0.40, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is WDI a good diversifier for GDL?
To a limited degree. At 0.56 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 0.56 mean?
A reading of 0.56 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
$ curl https://www.pairbook.io/api/v1/pairs/gdl-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/gdl-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: GDL correlations · WDI correlations
