HDB vs TEI: Correlation
How closely do HDFC Bank Limited (HDB) and Templeton Emerging Markets Income Fund, Inc. (TEI) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HDB and TEI?
On 3 years of weekly data the HDB/TEI correlation comes out at 0.38, moderate. The link has tightened recently: the 1-year correlation (0.57) runs above the 3-year figure (0.38). The 5-year figure is 0.37, and annualized covariance runs at 151.9 %².
By 3-year correlation, TEI places #5 of the 11 assets tracked against HDB. Their recent paths diverged sharply: over the last 12 months TEI outperformed by 65.2 percentage points (-37.9% for HDB against +27.3% for TEI). Note the risk asymmetry: HDB runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
HDB vs TEI: side by side
| HDB (HDFC Bank Limited) | TEI (Templeton Emerging Markets Income Fund, Inc.) | |
|---|---|---|
| 1-year return | -37.9% | +27.3% |
| 5-year return | -38.6% | +54.4% |
| Volatility (ann.) | 25.1% | 15.8% |
| Beta vs S&P 500 | 0.44 | 0.58 |
| Max drawdown (3Y) | -42.4% | -14.5% |
| Market cap | $115.4B | $0.3B |
| P/E (trailing) | 15.7 | 3.4 |
| Dividend yield | 56.11% | 8.36% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HDB | TEI |
|---|---|---|
| 2022 | +7.4% | -15.5% |
| 2023 | +0.2% | +3.8% |
| 2024 | -3.7% | +11.9% |
| 2025 | +15.9% | +45.6% |
| 2026 | -38.5% | +12.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HDB and TEI good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between HDB and TEI?
The HDB/TEI correlation stands at 0.38 on a 3-year window (1 year: 0.57, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is TEI a good diversifier for HDB?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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/hdb-vs-tei.json
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Related comparisons
Hubs: HDB correlations · TEI correlations
