CAF vs TDF: Correlation
Measured on weekly returns over the past three years, Morgan Stanley China A Share Fund Inc. (CAF) and Templeton Dragon Fund, Inc. (TDF) carry a correlation of 0.77, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAF and TDF?
On 3 years of weekly data the CAF/TDF correlation comes out at 0.77, strong. Lately the two have drifted apart, with the 1-year correlation at 0.61 versus 0.77 over 3 years. The 5-year figure is 0.77, and annualized covariance runs at 347.4 %².
TDF is one of the assets that tracks CAF most closely: it ranks #1 out of the 14 assets we track against CAF. Their recent paths diverged sharply: over the last 12 months CAF outperformed by 26.3 percentage points (+29.7% for CAF against +3.4% for TDF).
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.
CAF vs TDF: side by side
| CAF (Morgan Stanley China A Share Fund Inc.) | TDF (Templeton Dragon Fund, Inc.) | |
|---|---|---|
| 1-year return | +29.7% | +3.4% |
| 5-year return | +4.1% | -29.3% |
| Volatility (ann.) | 20.4% | 22.2% |
| Beta vs S&P 500 | 0.48 | 0.64 |
| Max drawdown (3Y) | -26.3% | -22.2% |
| Market cap | $0.3B | $0.3B |
| P/E (trailing) | 4.6 | 3.6 |
| Dividend yield | 0.00% | 3.68% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAF | TDF |
|---|---|---|
| 2022 | -30.4% | -32.9% |
| 2023 | -9.4% | -20.1% |
| 2024 | +0.3% | +5.5% |
| 2025 | +41.5% | +37.7% |
| 2026 | +9.7% | -1.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAF and TDF good diversifiers for each other?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAF and TDF?
As of 2026-08-27, the correlation of weekly returns between CAF and TDF is 0.77 over 3 years, 0.61 over 1 year and 0.77 over 5 years.
Is TDF a good diversifier for CAF?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.77 mean?
On the −1 to +1 scale, 0.77 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/caf-vs-tdf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/caf-vs-tdf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAF correlations · TDF correlations
