FFA vs VXZ: Correlation
Measured on weekly returns over the past three years, First Trust Enhanced Equity Income Fund (FFA) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.68, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FFA and VXZ?
On 3 years of weekly data the FFA/VXZ correlation comes out at -0.68, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.59) sits close to the 3-year figure. The 5-year figure is -0.66, and annualized covariance runs at -260.0 %².
Out of 20 assets tracked against FFA, VXZ lands near the bottom at #18. The last year tells two different stories: FFA led by 33.4 percentage points, +17.3% for FFA against -16.1% for VXZ. One caveat on sizing: VXZ is 1.7 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 VXZ: side by side
| FFA (First Trust Enhanced Equity Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +17.3% | -16.1% |
| 5-year return | +54.8% | -53.1% |
| Volatility (ann.) | 14.9% | 25.6% |
| Beta vs S&P 500 | 0.93 | -1.31 |
| Max drawdown (3Y) | -19.9% | -36.4% |
| Market cap | $0.5B | – |
| P/E (trailing) | 5.7 | – |
| Dividend yield | 6.39% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FFA | VXZ |
|---|---|---|
| 2022 | -20.3% | +0.5% |
| 2023 | +24.7% | -44.0% |
| 2024 | +21.5% | -12.7% |
| 2025 | +14.2% | +5.7% |
| 2026 | +8.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FFA and VXZ good diversifiers for each other?
Yes: at -0.68, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FFA and VXZ?
Using weekly returns as of 2026-08-27: -0.68 over 3 years, with -0.59 over the last year and -0.66 over 5 years.
Is VXZ a good diversifier for FFA?
Yes: at -0.68, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.68 mean?
On the −1 to +1 scale, -0.68 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/ffa-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ffa-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FFA correlations · VXZ correlations
