CAKE vs VXZ: Correlation
Measured on weekly returns over the past three years, The Cheesecake Factory Incorporated (CAKE) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.32, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and VXZ?
On 3 years of weekly data the CAKE/VXZ correlation comes out at -0.32, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.46 versus -0.32 over 3 years. The 5-year figure is -0.36, and annualized covariance runs at -288.8 %².
Out of 23 assets tracked against CAKE, VXZ lands near the bottom at #22. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 97.2 percentage points (+81.1% for CAKE 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.
CAKE vs VXZ: side by side
| CAKE (The Cheesecake Factory Incorporated) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +81.1% | -16.1% |
| 5-year return | +170.4% | -53.1% |
| Volatility (ann.) | 34.8% | 25.6% |
| Beta vs S&P 500 | 0.93 | -1.31 |
| Max drawdown (3Y) | -36.4% | -36.4% |
| Market cap | $5.5B | – |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 0.99% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | VXZ |
|---|---|---|
| 2022 | -17.0% | +0.5% |
| 2023 | +14.0% | -44.0% |
| 2024 | +39.3% | -12.7% |
| 2025 | +8.6% | +5.7% |
| 2026 | +120.8% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and VXZ good diversifiers for each other?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CAKE and VXZ?
The CAKE/VXZ correlation stands at -0.32 on a 3-year window (1 year: -0.46, 5 years: -0.36), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for CAKE?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.32 mean?
A reading of -0.32 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/cake-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cake-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAKE correlations · VXZ correlations
