BDCZ vs VXX: Correlation
How closely do ETRACS MarketVector Business Development Companies Liquid (BDCZ) 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 -0.55, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BDCZ and VXX?
Across a 3-year window, the weekly returns of BDCZ and VXX correlate at -0.55, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.35 versus -0.55 over 3 years. Stretching to 5 years gives -0.53, with an annualized covariance of -536.5 %².
Out of 49 assets tracked against BDCZ, VXX lands near the bottom at #48. The last year tells two different stories: BDCZ led by 45.7 percentage points, -4.0% for BDCZ against -49.7% for VXX. One caveat on sizing: VXX is 3.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
BDCZ vs VXX: side by side
| BDCZ (ETRACS MarketVector Business Development Companies Liquid) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -4.0% | -49.7% |
| 5-year return | +29.0% | -95.6% |
| Volatility (ann.) | 16.0% | 60.9% |
| Beta vs S&P 500 | 0.58 | -3.31 |
| Max drawdown (3Y) | -20.8% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BDCZ | VXX |
|---|---|---|
| 2022 | -9.1% | -23.8% |
| 2023 | +25.3% | -72.5% |
| 2024 | +12.2% | -26.2% |
| 2025 | -3.7% | -42.2% |
| 2026 | +0.4% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BDCZ and VXX good diversifiers for each other?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between BDCZ and VXX?
The BDCZ/VXX correlation stands at -0.55 on a 3-year window (1 year: -0.35, 5 years: -0.53), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for BDCZ?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.55 mean?
A reading of -0.55 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/bdcz-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bdcz-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BDCZ correlations · VXX correlations
