EDD vs VXX: Correlation
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD) 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 -0.47.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EDD and VXX?
Over the past 3 years, EDD and VXX moved with a correlation of -0.47, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.52) sits close to the 3-year figure. Over 5 years the correlation is -0.45, and the annualized covariance of weekly returns is -468.4 %².
Out of 10 assets tracked against EDD, VXX lands near the bottom at #10. Correlation aside, the last 12 months split them widely, with EDD ahead by 74.9 points (+25.2% versus -49.7%). Note the risk asymmetry: VXX runs 3.7 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.
EDD vs VXX: side by side
| EDD (Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +25.2% | -49.7% |
| 5-year return | +51.4% | -95.6% |
| Volatility (ann.) | 16.4% | 60.9% |
| Beta vs S&P 500 | 0.52 | -3.31 |
| Max drawdown (3Y) | -17.7% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | 4.9 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EDD | VXX |
|---|---|---|
| 2022 | -14.1% | -23.8% |
| 2023 | +14.1% | -72.5% |
| 2024 | +8.6% | -26.2% |
| 2025 | +32.5% | -42.2% |
| 2026 | +16.8% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDD and VXX good diversifiers for each other?
Yes. With a correlation of -0.47, EDD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between EDD and VXX?
As of 2026-08-27, the correlation of weekly returns between EDD and VXX is -0.47 over 3 years, -0.52 over 1 year and -0.45 over 5 years.
Is VXX a good diversifier for EDD?
Yes. With a correlation of -0.47, EDD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.47 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/edd-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/edd-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EDD correlations · VXX correlations
