ITW vs VXX: Correlation
Illinois Tool Works (ITW) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and VXX?
Over the past 3 years, ITW and VXX moved with a correlation of -0.42, which is negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.17) than the 3-year average (-0.42). Over 5 years the correlation is -0.45, and the annualized covariance of weekly returns is -490.0 %².
VXX is close to the least connected end of ITW's tracked universe, ranking #81 of 81. The last year tells two different stories: ITW led by 57.9 percentage points, +8.2% for ITW against -49.7% for VXX. One caveat on sizing: VXX is 3.2 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.
ITW vs VXX: side by side
| ITW (Illinois Tool Works) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +8.2% | -49.7% |
| 5-year return | +36.1% | -95.6% |
| Volatility (ann.) | 19.0% | 60.9% |
| Beta vs S&P 500 | 0.64 | -3.31 |
| Max drawdown (3Y) | -20.6% | -83.3% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 2.26% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | VXX |
|---|---|---|
| 2022 | -8.5% | -23.8% |
| 2023 | +21.6% | -72.5% |
| 2024 | -1.0% | -26.2% |
| 2025 | -0.4% | -42.2% |
| 2026 | +15.8% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and VXX good diversifiers for each other?
Yes: at -0.42, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ITW and VXX?
The ITW/VXX correlation stands at -0.42 on a 3-year window (1 year: -0.17, 5 years: -0.45), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for ITW?
Yes: at -0.42, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.42 mean?
On the −1 to +1 scale, -0.42 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/itw-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/itw-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ITW correlations · VXX correlations
