EDD vs VXZ: Correlation
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EDD and VXZ?
On 3 years of weekly data the EDD/VXZ correlation comes out at -0.42, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.53) runs below the 3-year figure (-0.42). The 5-year figure is -0.47, and annualized covariance runs at -178.3 %².
Among the 10 assets we track against EDD, VXZ sits near the bottom by co-movement, at rank #9. Their recent paths diverged sharply: over the last 12 months EDD outperformed by 41.3 percentage points (+25.2% for EDD against -16.1% for VXZ). Risk is not evenly split, since VXZ carries 1.6 times the volatility of the other side.
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 VXZ: side by side
| EDD (Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +25.2% | -16.1% |
| 5-year return | +51.4% | -53.1% |
| Volatility (ann.) | 16.4% | 25.6% |
| Beta vs S&P 500 | 0.52 | -1.31 |
| Max drawdown (3Y) | -17.7% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 4.9 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EDD | VXZ |
|---|---|---|
| 2022 | -14.1% | +0.5% |
| 2023 | +14.1% | -44.0% |
| 2024 | +8.6% | -12.7% |
| 2025 | +32.5% | +5.7% |
| 2026 | +16.8% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDD and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.42 means the two rarely move for the same reasons.
FAQ
What is the correlation between EDD and VXZ?
Using weekly returns as of 2026-08-27: -0.42 over 3 years, with -0.53 over the last year and -0.47 over 5 years.
Is VXZ a good diversifier for EDD?
By historical standards, yes. A correlation of -0.42 means the two rarely move for the same reasons.
What does a correlation of -0.42 mean?
On the −1 to +1 scale, -0.42 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/edd-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/edd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EDD correlations · VXZ correlations
