MFM vs VXZ: Correlation
Measured on weekly returns over the past three years, Aberdeen Municipal Income Fund (MFM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.31, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MFM and VXZ?
On 3 years of weekly data the MFM/VXZ correlation comes out at -0.31, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.33 lands near the 3-year figure. The 5-year figure is -0.29, and annualized covariance runs at -101.5 %².
Among the 10 assets we track against MFM, VXZ sits near the bottom by co-movement, at rank #10. Their recent paths diverged sharply: over the last 12 months MFM outperformed by 27.3 percentage points (+11.2% for MFM against -16.1% for VXZ). One caveat on sizing: VXZ is 2.0 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.
MFM vs VXZ: side by side
| MFM (Aberdeen Municipal Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +11.2% | -16.1% |
| 5-year return | -4.9% | -53.1% |
| Volatility (ann.) | 12.8% | 25.6% |
| Beta vs S&P 500 | 0.28 | -1.31 |
| Max drawdown (3Y) | -11.7% | -36.4% |
| Market cap | $0.2B | – |
| P/E (trailing) | 13.1 | – |
| Dividend yield | 5.25% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MFM | VXZ |
|---|---|---|
| 2022 | -22.6% | +0.5% |
| 2023 | +4.2% | -44.0% |
| 2024 | +8.5% | -12.7% |
| 2025 | +7.0% | +5.7% |
| 2026 | +3.2% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MFM and VXZ good diversifiers for each other?
Yes. With a correlation of -0.31, MFM and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between MFM and VXZ?
Using weekly returns as of 2026-08-27: -0.31 over 3 years, with -0.33 over the last year and -0.29 over 5 years.
Is VXZ a good diversifier for MFM?
Yes. With a correlation of -0.31, MFM and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.31 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/mfm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mfm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MFM correlations · VXZ correlations
