ERC vs TEI: Correlation
Allspring Multi-Sector Income Fund (ERC) and Templeton Emerging Markets Income Fund, Inc. (TEI) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERC and TEI?
On 3 years of weekly data the ERC/TEI correlation comes out at 0.74, strong. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 118.4 %².
Among the 22 assets we track against ERC, TEI ranks #9 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TEI ahead by 20.6 points (+6.7% versus +27.3%). Risk is not evenly split, since TEI carries 1.6 times the volatility of the other side.
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.
ERC vs TEI: side by side
| ERC (Allspring Multi-Sector Income Fund) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +6.7% | +27.3% |
| 5-year return | +11.4% | +54.4% |
| Volatility (ann.) | 10.1% | 15.8% |
| Beta vs S&P 500 | 0.41 | 0.58 |
| Max drawdown (3Y) | -9.8% | -14.5% |
| Market cap | $0.3B | $0.3B |
| P/E (trailing) | 9.7 | 3.4 |
| Dividend yield | 9.33% | 8.36% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ERC | TEI |
|---|---|---|
| 2022 | -17.8% | -15.5% |
| 2023 | +4.9% | +3.8% |
| 2024 | +6.1% | +11.9% |
| 2025 | +11.1% | +45.6% |
| 2026 | +5.8% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ERC and TEI good diversifiers for each other?
To a limited degree. At 0.74 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 ERC and TEI?
As of 2026-08-27, the correlation of weekly returns between ERC and TEI is 0.74 over 3 years, 0.74 over 1 year and 0.68 over 5 years.
Is TEI a good diversifier for ERC?
To a limited degree. At 0.74 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 0.74 mean?
On the −1 to +1 scale, 0.74 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/erc-vs-tei.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/erc-vs-tei/)
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Related comparisons
Hubs: ERC correlations · TEI correlations
