BCAT vs VXZ: Correlation
BlackRock Capital Allocation Term Trust (BCAT) 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 -0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BCAT and VXZ?
Across a 3-year window, the weekly returns of BCAT and VXZ correlate at -0.52, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.49) sits close to the 3-year figure. Stretching to 5 years gives -0.53, with an annualized covariance of -173.8 %².
VXZ is close to the least connected end of BCAT's tracked universe, ranking #9 of 11. The last year tells two different stories: BCAT led by 48.3 percentage points, +32.2% for BCAT against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 2.0 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.
BCAT vs VXZ: side by side
| BCAT (BlackRock Capital Allocation Term Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +32.2% | -16.1% |
| 5-year return | +49.6% | -53.1% |
| Volatility (ann.) | 13.1% | 25.6% |
| Beta vs S&P 500 | 0.60 | -1.31 |
| Max drawdown (3Y) | -13.7% | -36.4% |
| Market cap | $1.7B | – |
| P/E (trailing) | 7.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BCAT | VXZ |
|---|---|---|
| 2022 | -22.6% | +0.5% |
| 2023 | +19.3% | -44.0% |
| 2024 | +19.4% | -12.7% |
| 2025 | +16.8% | +5.7% |
| 2026 | +28.4% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BCAT and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.52 means the two rarely move for the same reasons.
FAQ
What is the correlation between BCAT and VXZ?
As of 2026-08-27, the correlation of weekly returns between BCAT and VXZ is -0.52 over 3 years, -0.49 over 1 year and -0.53 over 5 years.
Is VXZ a good diversifier for BCAT?
By historical standards, yes. A correlation of -0.52 means the two rarely move for the same reasons.
What does a correlation of -0.52 mean?
A reading of -0.52 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/bcat-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bcat-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BCAT correlations · VXZ correlations
