ISD vs PAI: Correlation
How closely do PGIM High Yield Bond Fund, Inc. (ISD) and Western Asset Investment Grade Income Fund Inc. (PAI) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ISD and PAI?
Across a 3-year window, the weekly returns of ISD and PAI correlate at 0.64, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Stretching to 5 years gives 0.61, with an annualized covariance of 81.3 %².
Among the 19 assets we track against ISD, PAI ranks #8 by 3-year correlation. The trailing year gives PAI the advantage: -7.0% versus -0.6%, a 6.4-point spread.
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.
ISD vs PAI: side by side
| ISD (PGIM High Yield Bond Fund, Inc.) | PAI (Western Asset Investment Grade Income Fund Inc.) | |
|---|---|---|
| 1-year return | -7.0% | -0.6% |
| 5-year return | +21.1% | -4.0% |
| Volatility (ann.) | 12.7% | 10.0% |
| Beta vs S&P 500 | 0.50 | 0.28 |
| Max drawdown (3Y) | -13.9% | -8.9% |
| Market cap | $0.4B | $0.1B |
| P/E (trailing) | 10.5 | 12.9 |
| Dividend yield | 0.00% | 2.65% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ISD | PAI |
|---|---|---|
| 2022 | -18.4% | -22.5% |
| 2023 | +15.1% | +9.1% |
| 2024 | +22.1% | +9.2% |
| 2025 | +15.6% | +5.4% |
| 2026 | -9.9% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ISD and PAI good diversifiers for each other?
To a limited degree. At 0.64 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 ISD and PAI?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.71 over the last year and 0.61 over 5 years.
Is PAI a good diversifier for ISD?
To a limited degree. At 0.64 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 0.64 mean?
On the −1 to +1 scale, 0.64 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: ISD correlations · PAI correlations
