EDD vs TEI: Correlation
How closely do Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD) and Templeton Emerging Markets Income Fund, Inc. (TEI) 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 EDD and TEI?
On 3 years of weekly data the EDD/TEI correlation comes out at 0.76, strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. The 5-year figure is 0.72, and annualized covariance runs at 198.1 %².
In EDD's tracked universe of 10 assets, TEI sits right near the top at #1. Neither side won the trailing year by much: +25.2% against +27.3%.
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.
EDD vs TEI: side by side
| EDD (Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +25.2% | +27.3% |
| 5-year return | +51.4% | +54.4% |
| Volatility (ann.) | 16.4% | 15.8% |
| Beta vs S&P 500 | 0.52 | 0.58 |
| Max drawdown (3Y) | -17.7% | -14.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | 4.9 | 3.4 |
| Dividend yield | 0.00% | 8.36% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EDD | TEI |
|---|---|---|
| 2022 | -14.1% | -15.5% |
| 2023 | +14.1% | +3.8% |
| 2024 | +8.6% | +11.9% |
| 2025 | +32.5% | +45.6% |
| 2026 | +16.8% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDD and TEI good diversifiers for each other?
To a limited degree. At 0.76 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 EDD and TEI?
As of 2026-08-27, the correlation of weekly returns between EDD and TEI is 0.76 over 3 years, 0.82 over 1 year and 0.72 over 5 years.
Is TEI a good diversifier for EDD?
To a limited degree. At 0.76 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 0.76 mean?
A reading of 0.76 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/edd-vs-tei.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/edd-vs-tei/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EDD correlations · TEI correlations
