FRA vs VXZ: Correlation
How closely do Blackrock Floating Rate Income Strategies Fund Inc (FRA) 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 -0.45, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRA and VXZ?
On 3 years of weekly data the FRA/VXZ correlation comes out at -0.45, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.52 lands near the 3-year figure. The 5-year figure is -0.45, and annualized covariance runs at -135.2 %².
Among the 14 assets we track against FRA, VXZ sits near the bottom by co-movement, at rank #13. On 12-month performance FRA holds a 9.6-point edge, -6.5% against -16.1%. Note the risk asymmetry: VXZ runs 2.2 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.
FRA vs VXZ: side by side
| FRA (Blackrock Floating Rate Income Strategies Fund Inc) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -6.5% | -16.1% |
| 5-year return | +37.4% | -53.1% |
| Volatility (ann.) | 11.6% | 25.6% |
| Beta vs S&P 500 | 0.44 | -1.31 |
| Max drawdown (3Y) | -18.8% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 15.6 | – |
| Dividend yield | 13.61% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FRA | VXZ |
|---|---|---|
| 2022 | -10.6% | +0.5% |
| 2023 | +25.5% | -44.0% |
| 2024 | +21.6% | -12.7% |
| 2025 | -3.7% | +5.7% |
| 2026 | +1.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRA and VXZ good diversifiers for each other?
Yes. With a correlation of -0.45, FRA and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FRA and VXZ?
As of 2026-08-27, the correlation of weekly returns between FRA and VXZ is -0.45 over 3 years, -0.52 over 1 year and -0.45 over 5 years.
Is VXZ a good diversifier for FRA?
Yes. With a correlation of -0.45, FRA and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.45 mean?
A reading of -0.45 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/fra-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fra-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FRA correlations · VXZ correlations
