VLT vs WDI: Correlation
How closely do Invesco High Income Trust II (VLT) and Western Asset Diversified Income Fund (WDI) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VLT and WDI?
Across a 3-year window, the weekly returns of VLT and WDI correlate at 0.76, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 89.5 %².
Among the 40 assets we track against VLT, WDI ranks #11 by 3-year correlation. Their 12-month results are close: -1.3% for VLT against -2.3% for WDI.
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.
VLT vs WDI: side by side
| VLT (Invesco High Income Trust II) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | -1.3% | -2.3% |
| 5-year return | +12.4% | +14.7% |
| Volatility (ann.) | 10.0% | 11.7% |
| Beta vs S&P 500 | 0.47 | 0.46 |
| Max drawdown (3Y) | -13.4% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | 13.9 | 9.3 |
| Dividend yield | 11.52% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VLT | WDI |
|---|---|---|
| 2022 | -20.9% | -23.3% |
| 2023 | +13.1% | +25.1% |
| 2024 | +17.3% | +13.9% |
| 2025 | +13.2% | +10.7% |
| 2026 | -4.9% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VLT and WDI good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VLT and WDI?
The VLT/WDI correlation stands at 0.76 on a 3-year window (1 year: 0.66, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is WDI a good diversifier for VLT?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 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/vlt-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vlt-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VLT correlations · WDI correlations
