HDB vs MSD: Correlation
How closely do HDFC Bank Limited (HDB) and Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) trade together? Their weekly returns over three years give a correlation of 0.39, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HDB and MSD?
Over the past 3 years, HDB and MSD moved with a correlation of 0.39, which is moderate. Little has changed lately, as the 1-year reading of 0.48 lands near the 3-year figure. Over 5 years the correlation is 0.38, and the annualized covariance of weekly returns is 114.4 %².
Among the 11 assets we track against HDB, MSD ranks #4 by 3-year correlation. The last year tells two different stories: MSD led by 43.7 percentage points, -37.9% for HDB against +5.8% for MSD. Note the risk asymmetry: HDB runs 2.2 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.
HDB vs MSD: side by side
| HDB (HDFC Bank Limited) | MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) | |
|---|---|---|
| 1-year return | -37.9% | +5.8% |
| 5-year return | -38.6% | +22.9% |
| Volatility (ann.) | 25.1% | 11.6% |
| Beta vs S&P 500 | 0.44 | 0.40 |
| Max drawdown (3Y) | -42.4% | -12.8% |
| Market cap | $115.4B | $0.1B |
| P/E (trailing) | 15.7 | 6.9 |
| Dividend yield | 56.11% | 9.78% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HDB | MSD |
|---|---|---|
| 2022 | +7.4% | -22.1% |
| 2023 | +0.2% | +19.2% |
| 2024 | -3.7% | +24.9% |
| 2025 | +15.9% | +5.6% |
| 2026 | -38.5% | +2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HDB and MSD good diversifiers for each other?
Reasonably. At 0.39, HDB and MSD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HDB and MSD?
Using weekly returns as of 2026-08-27: 0.39 over 3 years, with 0.48 over the last year and 0.38 over 5 years.
Is MSD a good diversifier for HDB?
Reasonably. At 0.39, HDB and MSD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.39 mean?
A reading of 0.39 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/hdb-vs-msd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hdb-vs-msd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HDB correlations · MSD correlations
