BTZ vs TEI: Correlation
BlackRock Credit Allocation Income Trust (BTZ) and Templeton Emerging Markets Income Fund, Inc. (TEI) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BTZ and TEI?
Across a 3-year window, the weekly returns of BTZ and TEI correlate at 0.71, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Stretching to 5 years gives 0.58, with an annualized covariance of 127.8 %².
Within BTZ's tracked universe of 25 assets, TEI comes in at #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TEI outperformed by 25.7 percentage points (+1.6% for BTZ against +27.3% for TEI).
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.
BTZ vs TEI: side by side
| BTZ (BlackRock Credit Allocation Income Trust) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +1.6% | +27.3% |
| 5-year return | +5.4% | +54.4% |
| Volatility (ann.) | 11.5% | 15.8% |
| Beta vs S&P 500 | 0.44 | 0.58 |
| Max drawdown (3Y) | -9.3% | -14.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | 9.2 | 3.4 |
| Dividend yield | 0.00% | 8.36% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BTZ | TEI |
|---|---|---|
| 2022 | -27.1% | -15.5% |
| 2023 | +12.8% | +3.8% |
| 2024 | +11.3% | +11.9% |
| 2025 | +13.7% | +45.6% |
| 2026 | +0.1% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BTZ and TEI good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BTZ and TEI?
The BTZ/TEI correlation stands at 0.71 on a 3-year window (1 year: 0.70, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is TEI a good diversifier for BTZ?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.71 mean?
A reading of 0.71 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/btz-vs-tei.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/btz-vs-tei/)
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Related comparisons
Hubs: BTZ correlations · TEI correlations
