PCM vs VXZ: Correlation
Measured on weekly returns over the past three years, PCM Fund, Inc. (PCM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.36, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCM and VXZ?
On 3 years of weekly data the PCM/VXZ correlation comes out at -0.36, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.34 over 1 year against -0.36 over 3. The 5-year figure is -0.36, and annualized covariance runs at -175.4 %².
Out of 11 assets tracked against PCM, VXZ lands near the bottom at #11. Over the last 12 months PCM came out ahead by 13.2 percentage points (-2.9% against -16.1%).
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.
PCM vs VXZ: side by side
| PCM (PCM Fund, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -2.9% | -16.1% |
| 5-year return | -19.9% | -53.1% |
| Volatility (ann.) | 19.0% | 25.6% |
| Beta vs S&P 500 | 0.46 | -1.31 |
| Max drawdown (3Y) | -27.1% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 9.6 | – |
| Dividend yield | 14.25% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PCM | VXZ |
|---|---|---|
| 2022 | -19.7% | +0.5% |
| 2023 | +12.4% | -44.0% |
| 2024 | +8.8% | -12.7% |
| 2025 | -10.1% | +5.7% |
| 2026 | -4.0% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCM and VXZ 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 PCM and VXZ?
As of 2026-08-27, the correlation of weekly returns between PCM and VXZ is -0.36 over 3 years, -0.34 over 1 year and -0.36 over 5 years.
Is VXZ a good diversifier for PCM?
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/pcm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PCM correlations · VXZ correlations
