DSM vs VXZ: Correlation
Measured on weekly returns over the past three years, BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.38, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and VXZ?
Across a 3-year window, the weekly returns of DSM and VXZ correlate at -0.38, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.40) sits close to the 3-year figure. Stretching to 5 years gives -0.33, with an annualized covariance of -119.7 %².
Out of 18 assets tracked against DSM, VXZ lands near the bottom at #18. Correlation aside, the last 12 months split them widely, with DSM ahead by 24.7 points (+8.6% versus -16.1%). Note the risk asymmetry: VXZ runs 2.1 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.
DSM vs VXZ: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +8.6% | -16.1% |
| 5-year return | -13.5% | -53.1% |
| Volatility (ann.) | 12.4% | 25.6% |
| Beta vs S&P 500 | 0.29 | -1.31 |
| Max drawdown (3Y) | -13.4% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 9.2 | – |
| Dividend yield | 4.94% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DSM | VXZ |
|---|---|---|
| 2022 | -27.0% | +0.5% |
| 2023 | +3.2% | -44.0% |
| 2024 | +5.5% | -12.7% |
| 2025 | +10.9% | +5.7% |
| 2026 | -2.4% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and VXZ good diversifiers for each other?
Yes. With a correlation of -0.38, DSM and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between DSM and VXZ?
The DSM/VXZ correlation stands at -0.38 on a 3-year window (1 year: -0.40, 5 years: -0.33), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for DSM?
Yes. With a correlation of -0.38, DSM and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.38 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/dsm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dsm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DSM correlations · VXZ correlations
