MMU vs VXX: Correlation
How closely do Western Asset Managed Municipals Fund, Inc. (MMU) 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 -0.36, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MMU and VXX?
Over the past 3 years, MMU and VXX moved with a correlation of -0.36, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.42) sits close to the 3-year figure. Over 5 years the correlation is -0.34, and the annualized covariance of weekly returns is -250.2 %².
Among the 11 assets we track against MMU, VXX sits near the bottom by co-movement, at rank #10. Their recent paths diverged sharply: over the last 12 months MMU outperformed by 58.9 percentage points (+9.2% for MMU against -49.7% for VXX). One caveat on sizing: VXX is 5.4 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.
MMU vs VXX: side by side
| MMU (Western Asset Managed Municipals Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.2% | -49.7% |
| 5-year return | -2.0% | -95.6% |
| Volatility (ann.) | 11.3% | 60.9% |
| Beta vs S&P 500 | 0.27 | -3.31 |
| Max drawdown (3Y) | -9.5% | -83.3% |
| Market cap | $0.6B | – |
| P/E (trailing) | 10.7 | – |
| Dividend yield | 6.45% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MMU | VXX |
|---|---|---|
| 2022 | -19.6% | -23.8% |
| 2023 | +5.7% | -72.5% |
| 2024 | +6.6% | -26.2% |
| 2025 | +9.3% | -42.2% |
| 2026 | +1.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MMU and VXX good diversifiers for each other?
Yes: at -0.36, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between MMU and VXX?
As of 2026-08-27, the correlation of weekly returns between MMU and VXX is -0.36 over 3 years, -0.42 over 1 year and -0.34 over 5 years.
Is VXX a good diversifier for MMU?
Yes: at -0.36, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.36 mean?
A reading of -0.36 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/mmu-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mmu-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MMU correlations · VXX correlations
