CAF vs VXZ: Correlation
Morgan Stanley China A Share Fund Inc. (CAF) 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 -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAF and VXZ?
On 3 years of weekly data the CAF/VXZ correlation comes out at -0.26, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.43) runs below the 3-year figure (-0.26). The 5-year figure is -0.29, and annualized covariance runs at -134.8 %².
Among the 14 assets we track against CAF, VXZ sits near the bottom by co-movement, at rank #13. Their recent paths diverged sharply: over the last 12 months CAF outperformed by 45.8 percentage points (+29.7% for CAF against -16.1% for VXZ).
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.
CAF vs VXZ: side by side
| CAF (Morgan Stanley China A Share Fund Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +29.7% | -16.1% |
| 5-year return | +4.1% | -53.1% |
| Volatility (ann.) | 20.4% | 25.6% |
| Beta vs S&P 500 | 0.48 | -1.31 |
| Max drawdown (3Y) | -26.3% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 4.6 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAF | VXZ |
|---|---|---|
| 2022 | -30.4% | +0.5% |
| 2023 | -9.4% | -44.0% |
| 2024 | +0.3% | -12.7% |
| 2025 | +41.5% | +5.7% |
| 2026 | +9.7% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAF and VXZ good diversifiers for each other?
Yes. With a correlation of -0.26, CAF and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between CAF and VXZ?
The CAF/VXZ correlation stands at -0.26 on a 3-year window (1 year: -0.43, 5 years: -0.29), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for CAF?
Yes. With a correlation of -0.26, CAF and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
A reading of -0.26 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/caf-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/caf-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAF correlations · VXZ correlations
