PSHNX vs. HIO

Last updated Jun 5, 2026

PSHNX (Penn Capital Short Duration High Income Fund) and HIO (Western Asset High Income Opportunity Fund Inc) are both High Yield Bonds funds. Over the past 5 years, PSHNX returned 4.81%/yr vs 2.55%/yr for HIO. At a 0.40 correlation, their price movements are largely independent. PSHNX charges 1.01%/yr vs 0.01%/yr for HIO.

Performance

PSHNX vs. HIO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Penn Capital Short Duration High Income Fund (PSHNX) and Western Asset High Income Opportunity Fund Inc (HIO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSHNX achieves a 1.52% return, which is significantly lower than HIO's 1.82% return.

PSHNX

• 1D: -0.10%
• 1M: 0.37%
• YTD: 1.52%
• 6M: 2.26%
• 1Y: 6.22%
• 3Y*: 7.29%
• 5Y*: 4.81%
• 10Y*: —

HIO

• 1D: 0.28%
• 1M: -0.67%
• YTD: 1.82%
• 6M: 0.62%
• 1Y: 3.53%
• 3Y*: 9.87%
• 5Y*: 2.55%
• 10Y*: 5.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PSHNX vs. HIO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSHNX Penn Capital Short Duration High Income Fund	1.52%	7.72%	7.19%	8.72%	-2.26%	3.43%	0.88%	7.40%	0.61%	0.65%
HIO Western Asset High Income Opportunity Fund Inc	1.82%	5.33%	13.58%	8.07%	-17.09%	12.80%	6.07%	24.23%	-7.60%	1.49%

Correlation

The correlation between PSHNX and HIO is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (All Time) Calculated using the full available price history since Jul 21, 2017	0.40

Return for Risk

PSHNX vs. HIO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PSHNX

PSHNX Risk / Return Rank: 96
PSHNX Sharpe Ratio Rank: 95
PSHNX Sortino Ratio Rank: 96
PSHNX Omega Ratio Rank: 95
PSHNX Calmar Ratio Rank: 95
PSHNX Martin Ratio Rank: 97

HIO

HIO Risk / Return Rank: 5
HIO Sharpe Ratio Rank: 5
HIO Sortino Ratio Rank: 5
HIO Omega Ratio Rank: 5
HIO Calmar Ratio Rank: 6
HIO Martin Ratio Rank: 6

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PSHNX vs. HIO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Penn Capital Short Duration High Income Fund (PSHNX) and Western Asset High Income Opportunity Fund Inc (HIO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PSHNX	HIO	Difference
Sharpe ratio: Return per unit of total volatility	3.35	0.35	+3.01
Sortino ratio: Return per unit of downside risk	5.46	0.53	+4.93
Omega ratio: Gain probability vs. loss probability	1.79	1.07	+0.72
Calmar ratio: Return relative to maximum drawdown	5.56	0.53	+5.03
Martin ratio: Return relative to average drawdown	28.31	1.16	+27.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSHNX vs. HIO - Sharpe Ratio Comparison

The current PSHNX Sharpe Ratio is 3.35, which is higher than the HIO Sharpe Ratio of 0.35. The chart below compares the historical Sharpe Ratios of PSHNX and HIO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PSHNX	HIO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.35	0.35	+3.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.83	0.20	+1.63
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.36	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.26	0.34	+0.92

Drawdowns

PSHNX vs. HIO - Drawdown Comparison

The maximum PSHNX drawdown since its inception was -14.53%, smaller than the maximum HIO drawdown of -49.69%. Use the drawdown chart below to compare losses from any high point for PSHNX and HIO.

Drawdown Indicators

	PSHNX	HIO	Difference
Max Drawdown Largest peak-to-trough decline	-14.53%	-49.69%	+35.16%
Max Drawdown (1Y) Largest decline over 1 year	-1.14%	-6.70%	+5.56%
Max Drawdown (3Y) Largest decline over 3 years	-2.83%	-13.29%	+10.46%
Max Drawdown (5Y) Largest decline over 5 years	-6.02%	-26.18%	+20.16%
Max Drawdown (10Y) Largest decline over 10 years	—	-40.57%	—
Current Drawdown Current decline from peak	-0.10%	-2.97%	+2.87%
Average Drawdown Average peak-to-trough decline	-0.89%	-6.46%	+5.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	3.06%	-2.84%

Volatility

PSHNX vs. HIO - Volatility Comparison

The current volatility for Penn Capital Short Duration High Income Fund (PSHNX) is 0.69%, while Western Asset High Income Opportunity Fund Inc (HIO) has a volatility of 3.65%. This indicates that PSHNX experiences smaller price fluctuations and is considered to be less risky than HIO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSHNX	HIO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.69%	3.65%	-2.96%
Volatility (6M) Calculated over the trailing 6-month period	1.48%	7.83%	-6.35%
Volatility (1Y) Calculated over the trailing 1-year period	1.90%	10.25%	-8.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.65%	12.84%	-10.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.16%	15.97%	-12.81%

PSHNX vs. HIO - Expense Ratio Comparison

PSHNX has a 1.01% expense ratio, which is higher than HIO's 0.02% expense ratio.

Dividends

PSHNX vs. HIO - Dividend Comparison

PSHNX's dividend yield for the trailing twelve months is around 6.08%, less than HIO's 11.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HIO Western Asset High Income Opportunity Fund Inc	11.83%	11.48%	10.84%	9.90%	9.11%	7.02%	7.86%	6.91%	7.31%	7.04%	8.44%	9.08%
PSHNX Penn Capital Short Duration High Income Fund	6.08%	6.27%	6.43%	4.95%	3.47%	3.17%	3.95%	3.65%	3.13%	1.46%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSHNX and HIO in my portfolio?

PSHNX and HIO have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSHNX or HIO?

HIO has higher volatility (3.65%) compared to PSHNX (0.69%). In terms of maximum drawdown, PSHNX dropped -14.53% vs HIO's -49.69%.

Which has better risk-adjusted returns?

PSHNX currently has the higher Sharpe Ratio (3.35 vs 0.35), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.