EMD vs VXZ: Correlation
How closely do Western Asset Emerging Markets Debt Fund Inc (EMD) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.52, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMD and VXZ?
On 3 years of weekly data the EMD/VXZ correlation comes out at -0.52, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.64 versus -0.52 over 3 years. The 5-year figure is -0.50, and annualized covariance runs at -186.2 %².
VXZ is close to the least connected end of EMD's tracked universe, ranking #14 of 15. The last year tells two different stories: EMD led by 31.1 percentage points, +15.0% for EMD against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 1.8 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 VXZ: side by side
| EMD (Western Asset Emerging Markets Debt Fund Inc) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +15.0% | -16.1% |
| 5-year return | +28.3% | -53.1% |
| Volatility (ann.) | 14.1% | 25.6% |
| Beta vs S&P 500 | 0.51 | -1.31 |
| Max drawdown (3Y) | -13.3% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 6.7 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | EMD | VXZ |
|---|---|---|
| 2022 | -20.8% | +0.5% |
| 2023 | +12.3% | -44.0% |
| 2024 | +16.3% | -12.7% |
| 2025 | +23.4% | +5.7% |
| 2026 | +6.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMD and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.52 means the two rarely move for the same reasons.
FAQ
What is the correlation between EMD and VXZ?
As of 2026-08-27, the correlation of weekly returns between EMD and VXZ is -0.52 over 3 years, -0.64 over 1 year and -0.50 over 5 years.
Is VXZ a good diversifier for EMD?
By historical standards, yes. A correlation of -0.52 means the two rarely move for the same reasons.
What does a correlation of -0.52 mean?
A reading of -0.52 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/emd-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/emd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EMD correlations · VXZ correlations
