HEQ vs VXZ: Correlation
John Hancock Diversified Income Fund (HEQ) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HEQ and VXZ?
Across a 3-year window, the weekly returns of HEQ and VXZ correlate at -0.56, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.55 lands near the 3-year figure. Stretching to 5 years gives -0.41, with an annualized covariance of -175.5 %².
Among the 13 assets we track against HEQ, VXZ sits near the bottom by co-movement, at rank #12. The last year tells two different stories: HEQ led by 36.9 percentage points, +20.8% for HEQ against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 2.1 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.
HEQ vs VXZ: side by side
| HEQ (John Hancock Diversified Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +20.8% | -16.1% |
| 5-year return | +43.5% | -53.1% |
| Volatility (ann.) | 12.3% | 25.6% |
| Beta vs S&P 500 | 0.59 | -1.31 |
| Max drawdown (3Y) | -11.5% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.6 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HEQ | VXZ |
|---|---|---|
| 2022 | -3.1% | +0.5% |
| 2023 | -3.1% | -44.0% |
| 2024 | +11.7% | -12.7% |
| 2025 | +15.6% | +5.7% |
| 2026 | +15.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HEQ and VXZ good diversifiers for each other?
Yes. With a correlation of -0.56, HEQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between HEQ and VXZ?
Using weekly returns as of 2026-08-27: -0.56 over 3 years, with -0.55 over the last year and -0.41 over 5 years.
Is VXZ a good diversifier for HEQ?
Yes. With a correlation of -0.56, HEQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.56 mean?
A reading of -0.56 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/heq-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/heq-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HEQ correlations · VXZ correlations
