KARO vs VXZ: Correlation
Karooooo Ltd. (KARO) 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 -0.29.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KARO and VXZ?
Across a 3-year window, the weekly returns of KARO and VXZ correlate at -0.29, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.39) runs below the 3-year figure (-0.29). Stretching to 5 years gives -0.33, with an annualized covariance of -292.2 %².
VXZ is close to the least connected end of KARO's tracked universe, ranking #8 of 10. Correlation aside, the last 12 months split them widely, with KARO ahead by 49.1 points (+33.0% versus -16.1%). Note the risk asymmetry: KARO runs 1.5 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.
KARO vs VXZ: side by side
| KARO (Karooooo Ltd.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +33.0% | -16.1% |
| 5-year return | +131.7% | -53.1% |
| Volatility (ann.) | 39.0% | 25.6% |
| Beta vs S&P 500 | 1.10 | -1.31 |
| Max drawdown (3Y) | -32.3% | -36.4% |
| Market cap | $2.1B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 33.69% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KARO | VXZ |
|---|---|---|
| 2022 | -41.5% | +0.5% |
| 2023 | +8.0% | -44.0% |
| 2024 | +91.5% | -12.7% |
| 2025 | +3.5% | +5.7% |
| 2026 | +50.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KARO and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.29 means the two rarely move for the same reasons.
FAQ
What is the correlation between KARO and VXZ?
The KARO/VXZ correlation stands at -0.29 on a 3-year window (1 year: -0.39, 5 years: -0.33), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for KARO?
By historical standards, yes. A correlation of -0.29 means the two rarely move for the same reasons.
What does a correlation of -0.29 mean?
On the −1 to +1 scale, -0.29 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/karo-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/karo-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KARO correlations · VXZ correlations
