IPGP vs VXZ: Correlation
How closely do IPG Photonics Corporation (IPGP) 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 -0.32, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IPGP and VXZ?
Across a 3-year window, the weekly returns of IPGP and VXZ correlate at -0.32, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.10) runs above the 3-year figure (-0.32). Stretching to 5 years gives -0.38, with an annualized covariance of -393.0 %².
Among the 18 assets we track against IPGP, VXZ sits near the bottom by co-movement, at rank #17. On 12-month performance IPGP holds a 8.5-point edge, -7.6% against -16.1%. Note the risk asymmetry: IPGP runs 1.9 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.
IPGP vs VXZ: side by side
| IPGP (IPG Photonics Corporation) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -7.6% | -16.1% |
| 5-year return | -55.1% | -53.1% |
| Volatility (ann.) | 48.0% | 25.6% |
| Beta vs S&P 500 | 1.24 | -1.31 |
| Max drawdown (3Y) | -55.1% | -36.4% |
| Market cap | $3.3B | – |
| P/E (trailing) | 113.6 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IPGP | VXZ |
|---|---|---|
| 2022 | -45.0% | +0.5% |
| 2023 | +14.7% | -44.0% |
| 2024 | -33.0% | -12.7% |
| 2025 | -1.5% | +5.7% |
| 2026 | +7.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IPGP and VXZ good diversifiers for each other?
Yes. With a correlation of -0.32, IPGP and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IPGP and VXZ?
Using weekly returns as of 2026-08-27: -0.32 over 3 years, with -0.10 over the last year and -0.38 over 5 years.
Is VXZ a good diversifier for IPGP?
Yes. With a correlation of -0.32, IPGP and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.32 mean?
A reading of -0.32 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/ipgp-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ipgp-vs-vxz/)
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Related comparisons
Hubs: IPGP correlations · VXZ correlations
