MSD vs VXZ: Correlation
Measured on weekly returns over the past three years, Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.45, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSD and VXZ?
Across a 3-year window, the weekly returns of MSD and VXZ correlate at -0.45, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.58) runs below the 3-year figure (-0.45). Stretching to 5 years gives -0.43, with an annualized covariance of -134.4 %².
Out of 13 assets tracked against MSD, VXZ lands near the bottom at #12. Their recent paths diverged sharply: over the last 12 months MSD outperformed by 21.9 percentage points (+5.8% for MSD against -16.1% for VXZ). Risk is not evenly split, since VXZ carries 2.2 times the volatility of the other side.
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.
MSD vs VXZ: side by side
| MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +5.8% | -16.1% |
| 5-year return | +22.9% | -53.1% |
| Volatility (ann.) | 11.6% | 25.6% |
| Beta vs S&P 500 | 0.40 | -1.31 |
| Max drawdown (3Y) | -12.8% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | 6.9 | – |
| Dividend yield | 9.78% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MSD | VXZ |
|---|---|---|
| 2022 | -22.1% | +0.5% |
| 2023 | +19.2% | -44.0% |
| 2024 | +24.9% | -12.7% |
| 2025 | +5.6% | +5.7% |
| 2026 | +2.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSD and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.45 means the two rarely move for the same reasons.
FAQ
What is the correlation between MSD and VXZ?
The MSD/VXZ correlation stands at -0.45 on a 3-year window (1 year: -0.58, 5 years: -0.43), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for MSD?
By historical standards, yes. A correlation of -0.45 means the two rarely move for the same reasons.
What does a correlation of -0.45 mean?
A reading of -0.45 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/msd-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/msd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MSD correlations · VXZ correlations
