MCN vs VXZ: Correlation
How closely do XAI Madison Equity Premium Income Fund (MCN) 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 -0.46, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCN and VXZ?
Across a 3-year window, the weekly returns of MCN and VXZ correlate at -0.46, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.52 lands near the 3-year figure. Stretching to 5 years gives -0.45, with an annualized covariance of -164.4 %².
Among the 13 assets we track against MCN, VXZ sits near the bottom by co-movement, at rank #12. Correlation aside, the last 12 months split them widely, with MCN ahead by 17.9 points (+1.8% versus -16.1%). Note the risk asymmetry: VXZ runs 1.8 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.
MCN vs VXZ: side by side
| MCN (XAI Madison Equity Premium Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +1.8% | -16.1% |
| 5-year return | +17.0% | -53.1% |
| Volatility (ann.) | 13.9% | 25.6% |
| Beta vs S&P 500 | 0.46 | -1.31 |
| Max drawdown (3Y) | -24.5% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | 18.2 | – |
| Dividend yield | 12.74% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MCN | VXZ |
|---|---|---|
| 2022 | +6.3% | +0.5% |
| 2023 | +7.0% | -44.0% |
| 2024 | -1.5% | -12.7% |
| 2025 | +0.7% | +5.7% |
| 2026 | +2.2% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCN and VXZ good diversifiers for each other?
Yes. With a correlation of -0.46, MCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between MCN and VXZ?
The MCN/VXZ correlation stands at -0.46 on a 3-year window (1 year: -0.52, 5 years: -0.45), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for MCN?
Yes. With a correlation of -0.46, MCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.46 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/mcn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mcn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MCN correlations · VXZ correlations
