CAT vs VXX: Correlation
Caterpillar Inc. (CAT) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and VXX?
Over the past 3 years, CAT and VXX moved with a correlation of -0.45, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.22) runs above the 3-year figure (-0.45). Over 5 years the correlation is -0.43, and the annualized covariance of weekly returns is -797.4 %².
Among the 36 assets we track against CAT, VXX sits near the bottom by co-movement, at rank #36. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 140.2 percentage points (+90.5% for CAT against -49.7% for VXX). One caveat on sizing: VXX is 2.1 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.
CAT vs VXX: side by side
| CAT (Caterpillar Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +90.5% | -49.7% |
| 5-year return | +321.1% | -95.6% |
| Volatility (ann.) | 29.4% | 60.9% |
| Beta vs S&P 500 | 1.03 | -3.31 |
| Max drawdown (3Y) | -34.0% | -83.3% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | – |
| Dividend yield | 0.75% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | CAT | VXX |
|---|---|---|
| 2022 | +18.6% | -23.8% |
| 2023 | +25.9% | -72.5% |
| 2024 | +24.7% | -26.2% |
| 2025 | +60.3% | -42.2% |
| 2026 | +43.5% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and VXX good diversifiers for each other?
Yes: at -0.45, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CAT and VXX?
Using weekly returns as of 2026-08-27: -0.45 over 3 years, with -0.22 over the last year and -0.43 over 5 years.
Is VXX a good diversifier for CAT?
Yes: at -0.45, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.45 mean?
On the −1 to +1 scale, -0.45 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/cat-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cat-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAT correlations · VXX correlations
