MMU vs VXZ: Correlation
Measured on weekly returns over the past three years, Western Asset Managed Municipals Fund, Inc. (MMU) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.39, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MMU and VXZ?
Across a 3-year window, the weekly returns of MMU and VXZ correlate at -0.39, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.46 over 1 year against -0.39 over 3. Stretching to 5 years gives -0.35, with an annualized covariance of -113.6 %².
VXZ is close to the least connected end of MMU's tracked universe, ranking #11 of 11. Their recent paths diverged sharply: over the last 12 months MMU outperformed by 25.3 percentage points (+9.2% for MMU against -16.1% for VXZ). Risk is not evenly split, since VXZ carries 2.3 times the volatility of the other side.
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 VXZ: side by side
| MMU (Western Asset Managed Municipals Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.2% | -16.1% |
| 5-year return | -2.0% | -53.1% |
| Volatility (ann.) | 11.3% | 25.6% |
| Beta vs S&P 500 | 0.27 | -1.31 |
| Max drawdown (3Y) | -9.5% | -36.4% |
| Market cap | $0.6B | – |
| P/E (trailing) | 10.7 | – |
| Dividend yield | 6.45% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MMU | VXZ |
|---|---|---|
| 2022 | -19.6% | +0.5% |
| 2023 | +5.7% | -44.0% |
| 2024 | +6.6% | -12.7% |
| 2025 | +9.3% | +5.7% |
| 2026 | +1.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MMU and VXZ good diversifiers for each other?
Yes. With a correlation of -0.39, MMU and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between MMU and VXZ?
The MMU/VXZ correlation stands at -0.39 on a 3-year window (1 year: -0.46, 5 years: -0.35), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for MMU?
Yes. With a correlation of -0.39, MMU and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.39 mean?
On the −1 to +1 scale, -0.39 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/mmu-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mmu-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MMU correlations · VXZ correlations
