WDI vs WEA: Correlation
How closely do Western Asset Diversified Income Fund (WDI) and Western Asset Bond Fund Share of Beneficial Interest (WEA) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WDI and WEA?
Over the past 3 years, WDI and WEA moved with a correlation of 0.63, which is strong. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 78.0 %².
Among the 24 assets we track against WDI, WEA ranks #13 by 3-year correlation. Neither side won the trailing year by much: -2.3% against +2.2%.
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.
WDI vs WEA: side by side
| WDI (Western Asset Diversified Income Fund) | WEA (Western Asset Bond Fund Share of Beneficial Interest) | |
|---|---|---|
| 1-year return | -2.3% | +2.2% |
| 5-year return | +14.7% | +4.5% |
| Volatility (ann.) | 11.7% | 10.5% |
| Beta vs S&P 500 | 0.46 | 0.29 |
| Max drawdown (3Y) | -14.1% | -11.4% |
| Market cap | $0.7B | – |
| P/E (trailing) | 9.3 | 12.6 |
| Dividend yield | 0.00% | 4.03% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | WDI | WEA |
|---|---|---|
| 2022 | -23.3% | -20.2% |
| 2023 | +25.1% | +9.6% |
| 2024 | +13.9% | +7.7% |
| 2025 | +10.7% | +10.6% |
| 2026 | +0.6% | -0.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are WDI and WEA good diversifiers for each other?
To a limited degree. At 0.63 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 WDI and WEA?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.55 over the last year and 0.55 over 5 years.
Is WEA a good diversifier for WDI?
To a limited degree. At 0.63 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 0.63 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/wdi-vs-wea.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wdi-vs-wea/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: WDI correlations · WEA correlations
