BBN vs VXZ: Correlation
BlackRock Taxable Municipal Bond Trust (BBN) 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 -0.29.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BBN and VXZ?
Over the past 3 years, BBN and VXZ moved with a correlation of -0.29, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.33 over 1 year against -0.29 over 3. Over 5 years the correlation is -0.21, and the annualized covariance of weekly returns is -89.7 %².
Among the 18 assets we track against BBN, VXZ sits near the bottom by co-movement, at rank #18. The last year tells two different stories: BBN led by 20.5 percentage points, +4.4% for BBN against -16.1% for VXZ. Note the risk asymmetry: VXZ 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.
BBN vs VXZ: side by side
| BBN (BlackRock Taxable Municipal Bond Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +4.4% | -16.1% |
| 5-year return | -14.4% | -53.1% |
| Volatility (ann.) | 12.3% | 25.6% |
| Beta vs S&P 500 | 0.26 | -1.31 |
| Max drawdown (3Y) | -11.8% | -36.4% |
| Market cap | $1.0B | – |
| P/E (trailing) | 12.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BBN | VXZ |
|---|---|---|
| 2022 | -31.0% | +0.5% |
| 2023 | +3.6% | -44.0% |
| 2024 | +6.0% | -12.7% |
| 2025 | +8.6% | +5.7% |
| 2026 | +2.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BBN and VXZ good diversifiers for each other?
Yes: at -0.29, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between BBN and VXZ?
As of 2026-08-27, the correlation of weekly returns between BBN and VXZ is -0.29 over 3 years, -0.33 over 1 year and -0.21 over 5 years.
Is VXZ a good diversifier for BBN?
Yes: at -0.29, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.29 mean?
A reading of -0.29 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/bbn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bbn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BBN correlations · VXZ correlations
