MSDL vs NCDL: Correlation
Morgan Stanley Direct Lending Fund (MSDL) and Nuveen Churchill Direct Lending Corp. (NCDL) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSDL and NCDL?
Across a 3-year window, the weekly returns of MSDL and NCDL correlate at 0.54, moderate. The link has tightened recently: the 1-year correlation (0.77) runs above the 3-year figure (0.54). Stretching to 5 years gives n/a, with an annualized covariance of 229.8 %².
Among the 13 assets we track against MSDL, NCDL ranks #5 by 3-year correlation. The trailing year gives MSDL the advantage: -2.7% versus -11.6%, a 8.9-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.
MSDL vs NCDL: side by side
| MSDL (Morgan Stanley Direct Lending Fund) | NCDL (Nuveen Churchill Direct Lending Corp.) | |
|---|---|---|
| 1-year return | -2.7% | -11.6% |
| 5-year return | n/a | n/a |
| Volatility (ann.) | 21.2% | 20.2% |
| Beta vs S&P 500 | 0.57 | 0.48 |
| Max drawdown (3Y) | -29.7% | -22.3% |
| Market cap | $1.3B | $0.6B |
| P/E (trailing) | 22.2 | 13.1 |
| Dividend yield | 12.45% | 0.00% |
| Sector / category | US Listed | US Listed |
Are MSDL and NCDL good diversifiers for each other?
To a limited degree. At 0.54 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 MSDL and NCDL?
The MSDL/NCDL correlation stands at 0.54 on a 3-year window (1 year: 0.77, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is NCDL a good diversifier for MSDL?
To a limited degree. At 0.54 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 0.54 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
$ curl https://www.pairbook.io/api/v1/pairs/msdl-vs-ncdl.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/msdl-vs-ncdl/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MSDL correlations · NCDL correlations
