EMD vs TEI: Correlation
Western Asset Emerging Markets Debt Fund Inc (EMD) and Templeton Emerging Markets Income Fund, Inc. (TEI) show a strong relationship: their 3-year correlation of weekly returns is 0.76.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and TEI?
On 3 years of weekly data the EMD/TEI correlation comes out at 0.76, strong. Recent behaviour matches the longer record: 0.82 over 1 year against 0.76 over 3. The 5-year figure is 0.71, and annualized covariance runs at 168.2 %².
In EMD's tracked universe of 15 assets, TEI sits right near the top at #2. The trailing year gives TEI the advantage: +15.0% versus +27.3%, a 12.3-point spread.
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.
EMD vs TEI: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +15.0% | +27.3% |
| 5-year return | +28.3% | +54.4% |
| Volatility (ann.) | 14.1% | 15.8% |
| Beta vs S&P 500 | 0.51 | 0.58 |
| Max drawdown (3Y) | -13.3% | -14.5% |
| Market cap | – | $0.3B |
| P/E (trailing) | 6.7 | 3.4 |
| Dividend yield | 0.00% | 8.36% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EMD | TEI |
|---|---|---|
| 2022 | -20.8% | -15.5% |
| 2023 | +12.3% | +3.8% |
| 2024 | +16.3% | +11.9% |
| 2025 | +23.4% | +45.6% |
| 2026 | +6.9% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and TEI good diversifiers for each other?
Only partially. A correlation of 0.76 means EMD and TEI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EMD and TEI?
The EMD/TEI correlation stands at 0.76 on a 3-year window (1 year: 0.82, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is TEI a good diversifier for EMD?
Only partially. A correlation of 0.76 means EMD and TEI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
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/emd-vs-tei.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/emd-vs-tei/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EMD correlations · TEI correlations
