MSD vs VXX: Correlation
How closely do Morgan Stanley Emerging Markets Debt Fund, Inc. (MSD) 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 -0.49, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSD and VXX?
Across a 3-year window, the weekly returns of MSD and VXX correlate at -0.49, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.59 lands near the 3-year figure. Stretching to 5 years gives -0.41, with an annualized covariance of -347.7 %².
Among the 13 assets we track against MSD, VXX sits near the bottom by co-movement, at rank #13. Their recent paths diverged sharply: over the last 12 months MSD outperformed by 55.5 percentage points (+5.8% for MSD against -49.7% for VXX). One caveat on sizing: VXX is 5.2 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.
MSD vs VXX: side by side
| MSD (Morgan Stanley Emerging Markets Debt Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +5.8% | -49.7% |
| 5-year return | +22.9% | -95.6% |
| Volatility (ann.) | 11.6% | 60.9% |
| Beta vs S&P 500 | 0.40 | -3.31 |
| Max drawdown (3Y) | -12.8% | -83.3% |
| Market cap | $0.1B | – |
| P/E (trailing) | 6.9 | – |
| Dividend yield | 9.78% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MSD | VXX |
|---|---|---|
| 2022 | -22.1% | -23.8% |
| 2023 | +19.2% | -72.5% |
| 2024 | +24.9% | -26.2% |
| 2025 | +5.6% | -42.2% |
| 2026 | +2.6% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSD and VXX good diversifiers for each other?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between MSD and VXX?
Using weekly returns as of 2026-08-27: -0.49 over 3 years, with -0.59 over the last year and -0.41 over 5 years.
Is VXX a good diversifier for MSD?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.49 mean?
A reading of -0.49 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/msd-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/msd-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MSD correlations · VXX correlations
