EARN vs VXZ: Correlation
Measured on weekly returns over the past three years, Ellington Credit Company (EARN) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.55, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EARN and VXZ?
Across a 3-year window, the weekly returns of EARN and VXZ correlate at -0.55, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.53) sits close to the 3-year figure. Stretching to 5 years gives -0.53, with an annualized covariance of -346.7 %².
VXZ is close to the least connected end of EARN's tracked universe, ranking #14 of 14. The trailing year gives EARN the advantage: -7.9% versus -16.1%, a 8.2-point spread.
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.
EARN vs VXZ: side by side
| EARN (Ellington Credit Company) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -7.9% | -16.1% |
| 5-year return | -17.5% | -53.1% |
| Volatility (ann.) | 24.8% | 25.6% |
| Beta vs S&P 500 | 0.92 | -1.31 |
| Max drawdown (3Y) | -31.2% | -36.4% |
| Market cap | $0.2B | – |
| P/E (trailing) | 15.9 | – |
| Dividend yield | 21.57% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EARN | VXZ |
|---|---|---|
| 2022 | -25.0% | +0.5% |
| 2023 | +3.0% | -44.0% |
| 2024 | +24.6% | -12.7% |
| 2025 | -5.9% | +5.7% |
| 2026 | -5.0% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EARN and VXZ good diversifiers for each other?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between EARN and VXZ?
As of 2026-08-27, the correlation of weekly returns between EARN and VXZ is -0.55 over 3 years, -0.53 over 1 year and -0.53 over 5 years.
Is VXZ a good diversifier for EARN?
Yes: at -0.55, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.55 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/earn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/earn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EARN correlations · VXZ correlations
