NBB vs VXZ: Correlation
Nuveen Taxable Municipal Income Fund (NBB) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NBB and VXZ?
Across a 3-year window, the weekly returns of NBB and VXZ correlate at -0.25, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.48) runs below the 3-year figure (-0.25). Stretching to 5 years gives -0.28, with an annualized covariance of -77.5 %².
Among the 19 assets we track against NBB, VXZ sits near the bottom by co-movement, at rank #18. Correlation aside, the last 12 months split them widely, with NBB ahead by 21.4 points (+5.3% versus -16.1%). One caveat on sizing: VXZ is 2.1 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.
NBB vs VXZ: side by side
| NBB (Nuveen Taxable Municipal Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +5.3% | -16.1% |
| 5-year return | -5.4% | -53.1% |
| Volatility (ann.) | 12.0% | 25.6% |
| Beta vs S&P 500 | 0.22 | -1.31 |
| Max drawdown (3Y) | -11.4% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 16.4 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NBB | VXZ |
|---|---|---|
| 2022 | -24.6% | +0.5% |
| 2023 | +7.6% | -44.0% |
| 2024 | +1.4% | -12.7% |
| 2025 | +13.6% | +5.7% |
| 2026 | +2.4% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NBB and VXZ good diversifiers for each other?
Yes. With a correlation of -0.25, NBB and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between NBB and VXZ?
The NBB/VXZ correlation stands at -0.25 on a 3-year window (1 year: -0.48, 5 years: -0.28), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for NBB?
Yes. With a correlation of -0.25, NBB and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.25 mean?
On the −1 to +1 scale, -0.25 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/nbb-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nbb-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NBB correlations · VXZ correlations
