HYG vs VXZ: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.64, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and VXZ?
Over the past 3 years, HYG and VXZ moved with a correlation of -0.64, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.70 lands near the 3-year figure. Over 5 years the correlation is -0.55, and the annualized covariance of weekly returns is -76.8 %².
VXZ is close to the least connected end of HYG's tracked universe, ranking #46 of 46. Their recent paths diverged sharply: over the last 12 months HYG outperformed by 20.7 percentage points (+4.6% for HYG against -16.1% for VXZ). One caveat on sizing: VXZ is 5.4 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.
HYG vs VXZ: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +4.6% | -16.1% |
| 5-year return | +19.9% | -53.1% |
| Volatility (ann.) | 4.7% | 25.6% |
| Beta vs S&P 500 | 0.22 | -1.31 |
| Max drawdown (3Y) | -4.6% | -36.4% |
| Dividend yield | 5.94% | – |
| Expense ratio | 0.49% | – |
| Assets under management | $17.1B | – |
| Sector / category | ETF · Bonds | US Listed |
HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | HYG | VXZ |
|---|---|---|
| 2022 | -11.0% | +0.5% |
| 2023 | +11.5% | -44.0% |
| 2024 | +8.0% | -12.7% |
| 2025 | +8.6% | +5.7% |
| 2026 | +2.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and VXZ good diversifiers for each other?
Yes: at -0.64, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between HYG and VXZ?
The HYG/VXZ correlation stands at -0.64 on a 3-year window (1 year: -0.70, 5 years: -0.55), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for HYG?
Yes: at -0.64, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.64 mean?
On the −1 to +1 scale, -0.64 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/hyg-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hyg-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HYG correlations · VXZ correlations
