EMD vs VXX: Correlation
Western Asset Emerging Markets Debt Fund Inc (EMD) 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 -0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and VXX?
On 3 years of weekly data the EMD/VXX correlation comes out at -0.53, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.63) sits close to the 3-year figure. The 5-year figure is -0.46, and annualized covariance runs at -455.7 %².
VXX is close to the least connected end of EMD's tracked universe, ranking #15 of 15. Their recent paths diverged sharply: over the last 12 months EMD outperformed by 64.7 percentage points (+15.0% for EMD against -49.7% for VXX). Note the risk asymmetry: VXX runs 4.3 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.
EMD vs VXX: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +15.0% | -49.7% |
| 5-year return | +28.3% | -95.6% |
| Volatility (ann.) | 14.1% | 60.9% |
| Beta vs S&P 500 | 0.51 | -3.31 |
| Max drawdown (3Y) | -13.3% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | 6.7 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EMD | VXX |
|---|---|---|
| 2022 | -20.8% | -23.8% |
| 2023 | +12.3% | -72.5% |
| 2024 | +16.3% | -26.2% |
| 2025 | +23.4% | -42.2% |
| 2026 | +6.9% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and VXX good diversifiers for each other?
Yes. With a correlation of -0.53, EMD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between EMD and VXX?
Using weekly returns as of 2026-08-27: -0.53 over 3 years, with -0.63 over the last year and -0.46 over 5 years.
Is VXX a good diversifier for EMD?
Yes. With a correlation of -0.53, EMD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.53 mean?
On the −1 to +1 scale, -0.53 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/emd-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/emd-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EMD correlations · VXX correlations
