MSDL vs VXZ: Correlation
Measured on weekly returns over the past three years, Morgan Stanley Direct Lending Fund (MSDL) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.30, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSDL and VXZ?
Across a 3-year window, the weekly returns of MSDL and VXZ correlate at -0.30, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.38 lands near the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of -160.9 %².
Out of 13 assets tracked against MSDL, VXZ lands near the bottom at #12. The trailing year gives MSDL the advantage: -2.7% versus -16.1%, a 13.4-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.
MSDL vs VXZ: side by side
| MSDL (Morgan Stanley Direct Lending Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -2.7% | -16.1% |
| 5-year return | n/a | -53.1% |
| Volatility (ann.) | 21.2% | 25.6% |
| Beta vs S&P 500 | 0.57 | -1.31 |
| Max drawdown (3Y) | -29.7% | -36.4% |
| Market cap | $1.3B | – |
| P/E (trailing) | 22.2 | – |
| Dividend yield | 12.45% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MSDL | VXZ |
|---|---|---|
| 2022 | – | +0.5% |
| 2023 | – | -44.0% |
| 2024 | – | -12.7% |
| 2025 | -10.9% | +5.7% |
| 2026 | -1.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSDL and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.30 means the two rarely move for the same reasons.
FAQ
What is the correlation between MSDL and VXZ?
The MSDL/VXZ correlation stands at -0.30 on a 3-year window (1 year: -0.38, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for MSDL?
By historical standards, yes. A correlation of -0.30 means the two rarely move for the same reasons.
What does a correlation of -0.30 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-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/msdl-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MSDL correlations · VXZ correlations
