FFA vs VXX: Correlation
How closely do First Trust Enhanced Equity Income Fund (FFA) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.74, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FFA and VXX?
On 3 years of weekly data the FFA/VXX correlation comes out at -0.74, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.64) sits close to the 3-year figure. The 5-year figure is -0.65, and annualized covariance runs at -668.2 %².
VXX is close to the least connected end of FFA's tracked universe, ranking #19 of 20. Correlation aside, the last 12 months split them widely, with FFA ahead by 67.0 points (+17.3% versus -49.7%). One caveat on sizing: VXX is 4.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
FFA vs VXX: side by side
| FFA (First Trust Enhanced Equity Income Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +17.3% | -49.7% |
| 5-year return | +54.8% | -95.6% |
| Volatility (ann.) | 14.9% | 60.9% |
| Beta vs S&P 500 | 0.93 | -3.31 |
| Max drawdown (3Y) | -19.9% | -83.3% |
| Market cap | $0.5B | – |
| P/E (trailing) | 5.7 | – |
| Dividend yield | 6.39% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FFA | VXX |
|---|---|---|
| 2022 | -20.3% | -23.8% |
| 2023 | +24.7% | -72.5% |
| 2024 | +21.5% | -26.2% |
| 2025 | +14.2% | -42.2% |
| 2026 | +8.9% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FFA and VXX good diversifiers for each other?
Yes: at -0.74, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FFA and VXX?
As of 2026-08-27, the correlation of weekly returns between FFA and VXX is -0.74 over 3 years, -0.64 over 1 year and -0.65 over 5 years.
Is VXX a good diversifier for FFA?
Yes: at -0.74, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.74 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/ffa-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ffa-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FFA correlations · VXX correlations
