BIT vs VXZ: Correlation
BlackRock Multi-Sector Income Trust (BIT) 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 -0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BIT and VXZ?
Over the past 3 years, BIT and VXZ moved with a correlation of -0.49, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.61 versus -0.49 over 3 years. Over 5 years the correlation is -0.44, and the annualized covariance of weekly returns is -130.5 %².
Among the 11 assets we track against BIT, VXZ sits near the bottom by co-movement, at rank #10. Over the last 12 months BIT came out ahead by 13.8 percentage points (-2.3% against -16.1%). Note the risk asymmetry: VXZ runs 2.4 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.
BIT vs VXZ: side by side
| BIT (BlackRock Multi-Sector Income Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -2.3% | -16.1% |
| 5-year return | +5.8% | -53.1% |
| Volatility (ann.) | 10.5% | 25.6% |
| Beta vs S&P 500 | 0.42 | -1.31 |
| Max drawdown (3Y) | -11.6% | -36.4% |
| Market cap | $0.7B | – |
| P/E (trailing) | 11.3 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BIT | VXZ |
|---|---|---|
| 2022 | -14.6% | +0.5% |
| 2023 | +16.5% | -44.0% |
| 2024 | +7.2% | -12.7% |
| 2025 | -0.7% | +5.7% |
| 2026 | -1.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BIT and VXZ good diversifiers for each other?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between BIT and VXZ?
Using weekly returns as of 2026-08-27: -0.49 over 3 years, with -0.61 over the last year and -0.44 over 5 years.
Is VXZ a good diversifier for BIT?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.49 mean?
On the −1 to +1 scale, -0.49 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/bit-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bit-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BIT correlations · VXZ correlations
