IAF vs VXZ: Correlation
Measured on weekly returns over the past three years, abrdn Australia Equity Fund, Inc. (IAF) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.52, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IAF and VXZ?
Across a 3-year window, the weekly returns of IAF and VXZ correlate at -0.52, 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. Stretching to 5 years gives -0.51, with an annualized covariance of -247.8 %².
VXZ is close to the least connected end of IAF's tracked universe, ranking #13 of 14. Correlation aside, the last 12 months split them widely, with IAF ahead by 25.1 points (+9.0% versus -16.1%).
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 VXZ: side by side
| IAF (abrdn Australia Equity Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.0% | -16.1% |
| 5-year return | +23.6% | -53.1% |
| Volatility (ann.) | 18.6% | 25.6% |
| Beta vs S&P 500 | 0.88 | -1.31 |
| Max drawdown (3Y) | -23.6% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | 7.7 | – |
| Dividend yield | 10.76% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IAF | VXZ |
|---|---|---|
| 2022 | -19.4% | +0.5% |
| 2023 | +10.4% | -44.0% |
| 2024 | +8.2% | -12.7% |
| 2025 | +14.9% | +5.7% |
| 2026 | +12.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IAF and VXZ good diversifiers for each other?
Yes: at -0.52, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IAF and VXZ?
The IAF/VXZ correlation stands at -0.52 on a 3-year window (1 year: -0.59, 5 years: -0.51), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for IAF?
Yes: at -0.52, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.52 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iaf-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iaf-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IAF correlations · VXZ correlations
