MSDL vs VXX: Correlation
Measured on weekly returns over the past three years, Morgan Stanley Direct Lending Fund (MSDL) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.32, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSDL and VXX?
Across a 3-year window, the weekly returns of MSDL and VXX correlate at -0.32, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.34 over 1 year against -0.32 over 3. Stretching to 5 years gives n/a, with an annualized covariance of -423.4 %².
Among the 13 assets we track against MSDL, VXX sits near the bottom by co-movement, at rank #13. Their recent paths diverged sharply: over the last 12 months MSDL outperformed by 47.0 percentage points (-2.7% for MSDL against -49.7% for VXX). Risk is not evenly split, since VXX carries 2.9 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.
MSDL vs VXX: side by side
| MSDL (Morgan Stanley Direct Lending Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -2.7% | -49.7% |
| 5-year return | n/a | -95.6% |
| Volatility (ann.) | 21.2% | 60.9% |
| Beta vs S&P 500 | 0.57 | -3.31 |
| Max drawdown (3Y) | -29.7% | -83.3% |
| Market cap | $1.3B | – |
| P/E (trailing) | 22.2 | – |
| Dividend yield | 12.45% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MSDL | VXX |
|---|---|---|
| 2022 | – | -23.8% |
| 2023 | – | -72.5% |
| 2024 | – | -26.2% |
| 2025 | -10.9% | -42.2% |
| 2026 | -1.1% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSDL and VXX good diversifiers for each other?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between MSDL and VXX?
Using weekly returns as of 2026-08-27: -0.32 over 3 years, with -0.34 over the last year and n/a over 5 years.
Is VXX a good diversifier for MSDL?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.32 mean?
A reading of -0.32 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/msdl-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/msdl-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MSDL correlations · VXX correlations
