IAF vs VXX: Correlation
How closely do abrdn Australia Equity Fund, Inc. (IAF) 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 -0.58, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IAF and VXX?
Across a 3-year window, the weekly returns of IAF and VXX correlate at -0.58, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.64 over 1 year against -0.58 over 3. Stretching to 5 years gives -0.48, with an annualized covariance of -660.2 %².
VXX is close to the least connected end of IAF's tracked universe, ranking #14 of 14. Their recent paths diverged sharply: over the last 12 months IAF outperformed by 58.7 percentage points (+9.0% for IAF against -49.7% for VXX). One caveat on sizing: VXX is 3.3 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.
IAF vs VXX: side by side
| IAF (abrdn Australia Equity Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.0% | -49.7% |
| 5-year return | +23.6% | -95.6% |
| Volatility (ann.) | 18.6% | 60.9% |
| Beta vs S&P 500 | 0.88 | -3.31 |
| Max drawdown (3Y) | -23.6% | -83.3% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 10.76% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IAF | VXX |
|---|---|---|
| 2022 | -19.4% | -23.8% |
| 2023 | +10.4% | -72.5% |
| 2024 | +8.2% | -26.2% |
| 2025 | +14.9% | -42.2% |
| 2026 | +12.6% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IAF and VXX good diversifiers for each other?
Yes. With a correlation of -0.58, IAF and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IAF and VXX?
The IAF/VXX correlation stands at -0.58 on a 3-year window (1 year: -0.64, 5 years: -0.48), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for IAF?
Yes. With a correlation of -0.58, IAF and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.58 mean?
A reading of -0.58 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/iaf-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iaf-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IAF correlations · VXX correlations
