ARR vs VXX: Correlation
How closely do ARMOUR Residential REIT, Inc. (ARR) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.44, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARR and VXX?
Across a 3-year window, the weekly returns of ARR and VXX correlate at -0.44, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.25) than the 3-year average (-0.44). Stretching to 5 years gives -0.43, with an annualized covariance of -777.2 %².
VXX is close to the least connected end of ARR's tracked universe, ranking #12 of 13. The last year tells two different stories: ARR led by 78.7 percentage points, +29.0% for ARR against -49.7% for VXX. Note the risk asymmetry: VXX runs 2.1 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.
ARR vs VXX: side by side
| ARR (ARMOUR Residential REIT, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +29.0% | -49.7% |
| 5-year return | -29.0% | -95.6% |
| Volatility (ann.) | 29.0% | 60.9% |
| Beta vs S&P 500 | 0.93 | -3.31 |
| Max drawdown (3Y) | -44.3% | -83.3% |
| Market cap | $2.3B | – |
| P/E (trailing) | 3.7 | – |
| Dividend yield | 17.76% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARR | VXX |
|---|---|---|
| 2022 | -32.0% | -23.8% |
| 2023 | -15.4% | -72.5% |
| 2024 | +13.2% | -26.2% |
| 2025 | +11.7% | -42.2% |
| 2026 | +3.6% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARR and VXX good diversifiers for each other?
Yes. With a correlation of -0.44, ARR and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ARR and VXX?
The ARR/VXX correlation stands at -0.44 on a 3-year window (1 year: -0.25, 5 years: -0.43), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for ARR?
Yes. With a correlation of -0.44, ARR and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.44 mean?
On the −1 to +1 scale, -0.44 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/arr-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arr-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARR correlations · VXX correlations
