MUC vs VXZ: Correlation
How closely do Blackrock MuniHoldings California Quality Fund, Inc. (MUC) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.29, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MUC and VXZ?
Across a 3-year window, the weekly returns of MUC and VXZ correlate at -0.29, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.52) runs below the 3-year figure (-0.29). Stretching to 5 years gives -0.26, with an annualized covariance of -80.0 %².
Among the 15 assets we track against MUC, VXZ sits near the bottom by co-movement, at rank #15. Correlation aside, the last 12 months split them widely, with MUC ahead by 27.0 points (+10.9% versus -16.1%). One caveat on sizing: VXZ is 2.3 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.
MUC vs VXZ: side by side
| MUC (Blackrock MuniHoldings California Quality Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +10.9% | -16.1% |
| 5-year return | -13.2% | -53.1% |
| Volatility (ann.) | 10.9% | 25.6% |
| Beta vs S&P 500 | 0.25 | -1.31 |
| Max drawdown (3Y) | -10.7% | -36.4% |
| Market cap | $1.0B | – |
| P/E (trailing) | 46.3 | – |
| Dividend yield | 6.04% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MUC | VXZ |
|---|---|---|
| 2022 | -26.8% | +0.5% |
| 2023 | +7.9% | -44.0% |
| 2024 | +0.8% | -12.7% |
| 2025 | +6.0% | +5.7% |
| 2026 | +4.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MUC and VXZ good diversifiers for each other?
Yes: at -0.29, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between MUC and VXZ?
Using weekly returns as of 2026-08-27: -0.29 over 3 years, with -0.52 over the last year and -0.26 over 5 years.
Is VXZ a good diversifier for MUC?
Yes: at -0.29, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.29 mean?
A reading of -0.29 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/muc-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/muc-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MUC correlations · VXZ correlations
