KWEB vs TDF: Correlation
KraneShares CSI China Internet ETF (KWEB) and Templeton Dragon Fund, Inc. (TDF) show a very strong relationship: their 3-year correlation of weekly returns is 0.88.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KWEB and TDF?
On 3 years of weekly data the KWEB/TDF correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.75) than the 3-year average (0.88). The 5-year figure is 0.88, and annualized covariance runs at 658.6 %².
Few assets follow KWEB as closely as TDF, which ranks #2 of 40 tracked partners. Correlation aside, the last 12 months split them widely, with TDF ahead by 29.5 points (-26.1% versus +3.4%). Note the risk asymmetry: KWEB runs 1.5 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.
KWEB vs TDF: side by side
| KWEB (KraneShares CSI China Internet ETF) | TDF (Templeton Dragon Fund, Inc.) | |
|---|---|---|
| 1-year return | -26.1% | +3.4% |
| 5-year return | -36.2% | -29.3% |
| Volatility (ann.) | 33.9% | 22.2% |
| Beta vs S&P 500 | 0.90 | 0.64 |
| Max drawdown (3Y) | -41.6% | -22.2% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 3.6 |
| Dividend yield | – | 3.68% |
| Sector / category | ETF · Thematic | US Listed |
Year-by-year returns
| Year | KWEB | TDF |
|---|---|---|
| 2022 | -17.2% | -32.9% |
| 2023 | -9.1% | -20.1% |
| 2024 | +12.0% | +5.5% |
| 2025 | +23.5% | +37.7% |
| 2026 | -23.3% | -1.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KWEB and TDF good diversifiers for each other?
No: a correlation of 0.88 means KWEB and TDF tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between KWEB and TDF?
As of 2026-08-27, the correlation of weekly returns between KWEB and TDF is 0.88 over 3 years, 0.75 over 1 year and 0.88 over 5 years.
Is TDF a good diversifier for KWEB?
No: a correlation of 0.88 means KWEB and TDF tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.88 mean?
On the −1 to +1 scale, 0.88 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/kweb-vs-tdf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/kweb-vs-tdf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KWEB correlations · TDF correlations
