PCN vs VXZ: Correlation
How closely do Pimco Corporate & Income Strategy Fund (PCN) 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 -0.44, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCN and VXZ?
Across a 3-year window, the weekly returns of PCN and VXZ correlate at -0.44, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.62) runs below the 3-year figure (-0.44). Stretching to 5 years gives -0.43, with an annualized covariance of -164.7 %².
Among the 11 assets we track against PCN, VXZ sits near the bottom by co-movement, at rank #11. The last year tells two different stories: PCN led by 17.2 percentage points, +1.1% for PCN against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
PCN vs VXZ: side by side
| PCN (Pimco Corporate & Income Strategy Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +1.1% | -16.1% |
| 5-year return | +8.7% | -53.1% |
| Volatility (ann.) | 14.8% | 25.6% |
| Beta vs S&P 500 | 0.48 | -1.31 |
| Max drawdown (3Y) | -22.0% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 9.2 | – |
| Dividend yield | 11.51% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PCN | VXZ |
|---|---|---|
| 2022 | -22.9% | +0.5% |
| 2023 | +16.3% | -44.0% |
| 2024 | +19.6% | -12.7% |
| 2025 | +5.6% | +5.7% |
| 2026 | -0.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCN and VXZ good diversifiers for each other?
Yes. With a correlation of -0.44, PCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PCN and VXZ?
Using weekly returns as of 2026-08-27: -0.44 over 3 years, with -0.62 over the last year and -0.43 over 5 years.
Is VXZ a good diversifier for PCN?
Yes. With a correlation of -0.44, PCN and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.44 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pcn-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcn-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PCN correlations · VXZ correlations
