TEI vs VXZ: Correlation
Templeton Emerging Markets Income Fund, Inc. (TEI) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.46.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TEI and VXZ?
Across a 3-year window, the weekly returns of TEI and VXZ correlate at -0.46, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.52 lands near the 3-year figure. Stretching to 5 years gives -0.42, with an annualized covariance of -185.2 %².
VXZ is close to the least connected end of TEI's tracked universe, ranking #11 of 12. Their recent paths diverged sharply: over the last 12 months TEI outperformed by 43.4 percentage points (+27.3% for TEI against -16.1% for VXZ). Note the risk asymmetry: VXZ 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.
TEI vs VXZ: side by side
| TEI (Templeton Emerging Markets Income Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +27.3% | -16.1% |
| 5-year return | +54.4% | -53.1% |
| Volatility (ann.) | 15.8% | 25.6% |
| Beta vs S&P 500 | 0.58 | -1.31 |
| Max drawdown (3Y) | -14.5% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 3.4 | – |
| Dividend yield | 8.36% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | TEI | VXZ |
|---|---|---|
| 2022 | -15.5% | +0.5% |
| 2023 | +3.8% | -44.0% |
| 2024 | +11.9% | -12.7% |
| 2025 | +45.6% | +5.7% |
| 2026 | +12.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TEI and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.46 means the two rarely move for the same reasons.
FAQ
What is the correlation between TEI and VXZ?
The TEI/VXZ correlation stands at -0.46 on a 3-year window (1 year: -0.52, 5 years: -0.42), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for TEI?
By historical standards, yes. A correlation of -0.46 means the two rarely move for the same reasons.
What does a correlation of -0.46 mean?
A reading of -0.46 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/tei-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tei-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TEI correlations · VXZ correlations
