MHF vs VXX: Correlation
How closely do Western Asset Municipal High Income Fund, Inc. (MHF) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.32, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MHF and VXX?
Over the past 3 years, MHF and VXX moved with a correlation of -0.32, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.48) than the 3-year average (-0.32). Over 5 years the correlation is -0.30, and the annualized covariance of weekly returns is -237.3 %².
Out of 10 assets tracked against MHF, VXX lands near the bottom at #9. The last year tells two different stories: MHF led by 55.3 percentage points, +5.6% for MHF against -49.7% for VXX. Note the risk asymmetry: VXX runs 5.0 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.
MHF vs VXX: side by side
| MHF (Western Asset Municipal High Income Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +5.6% | -49.7% |
| 5-year return | +6.2% | -95.6% |
| Volatility (ann.) | 12.2% | 60.9% |
| Beta vs S&P 500 | 0.32 | -3.31 |
| Max drawdown (3Y) | -13.3% | -83.3% |
| Market cap | $0.2B | – |
| P/E (trailing) | 18.0 | – |
| Dividend yield | 5.93% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MHF | VXX |
|---|---|---|
| 2022 | -17.6% | -23.8% |
| 2023 | +4.6% | -72.5% |
| 2024 | +12.0% | -26.2% |
| 2025 | +7.2% | -42.2% |
| 2026 | +3.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MHF and VXX good diversifiers for each other?
By historical standards, yes. A correlation of -0.32 means the two rarely move for the same reasons.
FAQ
What is the correlation between MHF and VXX?
Using weekly returns as of 2026-08-27: -0.32 over 3 years, with -0.48 over the last year and -0.30 over 5 years.
Is VXX a good diversifier for MHF?
By historical standards, yes. A correlation of -0.32 means the two rarely move for the same reasons.
What does a correlation of -0.32 mean?
A reading of -0.32 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mhf-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mhf-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MHF correlations · VXX correlations
