DOCN vs VXZ: Correlation
How closely do DigitalOcean Holdings, Inc. (DOCN) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.29, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOCN and VXZ?
Across a 3-year window, the weekly returns of DOCN and VXZ correlate at -0.29, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (0.11) runs above the 3-year figure (-0.29). Stretching to 5 years gives -0.37, with an annualized covariance of -488.9 %².
Out of 16 assets tracked against DOCN, VXZ lands near the bottom at #14. The last year tells two different stories: DOCN led by 292.1 percentage points, +276.0% for DOCN against -16.1% for VXZ. Note the risk asymmetry: DOCN runs 2.5 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.
DOCN vs VXZ: side by side
| DOCN (DigitalOcean Holdings, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +276.0% | -16.1% |
| 5-year return | +95.5% | -53.1% |
| Volatility (ann.) | 64.8% | 25.6% |
| Beta vs S&P 500 | 1.71 | -1.31 |
| Max drawdown (3Y) | -44.9% | -36.4% |
| Market cap | $14.3B | – |
| P/E (trailing) | 52.4 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DOCN | VXZ |
|---|---|---|
| 2022 | -68.3% | +0.5% |
| 2023 | +44.1% | -44.0% |
| 2024 | -7.1% | -12.7% |
| 2025 | +41.2% | +5.7% |
| 2026 | +152.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOCN and VXZ good diversifiers for each other?
Yes. With a correlation of -0.29, DOCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between DOCN and VXZ?
The DOCN/VXZ correlation stands at -0.29 on a 3-year window (1 year: 0.11, 5 years: -0.37), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for DOCN?
Yes. With a correlation of -0.29, DOCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.29 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/docn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/docn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DOCN correlations · VXZ correlations
