ISD vs VXZ: Correlation
PGIM High Yield Bond Fund, Inc. (ISD) 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 -0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ISD and VXZ?
Over the past 3 years, ISD and VXZ moved with a correlation of -0.54, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.65) than the 3-year average (-0.54). Over 5 years the correlation is -0.54, and the annualized covariance of weekly returns is -176.5 %².
VXZ is close to the least connected end of ISD's tracked universe, ranking #19 of 19. On 12-month performance ISD holds a 9.1-point edge, -7.0% against -16.1%. Note the risk asymmetry: VXZ runs 2.0 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.
ISD vs VXZ: side by side
| ISD (PGIM High Yield Bond Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -7.0% | -16.1% |
| 5-year return | +21.1% | -53.1% |
| Volatility (ann.) | 12.7% | 25.6% |
| Beta vs S&P 500 | 0.50 | -1.31 |
| Max drawdown (3Y) | -13.9% | -36.4% |
| Market cap | $0.4B | – |
| P/E (trailing) | 10.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ISD | VXZ |
|---|---|---|
| 2022 | -18.4% | +0.5% |
| 2023 | +15.1% | -44.0% |
| 2024 | +22.1% | -12.7% |
| 2025 | +15.6% | +5.7% |
| 2026 | -9.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ISD and VXZ good diversifiers for each other?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ISD and VXZ?
Using weekly returns as of 2026-08-27: -0.54 over 3 years, with -0.65 over the last year and -0.54 over 5 years.
Is VXZ a good diversifier for ISD?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.54 mean?
On the −1 to +1 scale, -0.54 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/isd-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/isd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ISD correlations · VXZ correlations
