PCQ vs VXX: Correlation
Measured on weekly returns over the past three years, PIMCO California Municipal Income Fund (PCQ) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.27, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCQ and VXX?
Across a 3-year window, the weekly returns of PCQ and VXX correlate at -0.27, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.44 versus -0.27 over 3 years. Stretching to 5 years gives -0.24, with an annualized covariance of -206.3 %².
Out of 10 assets tracked against PCQ, VXX lands near the bottom at #8. Their recent paths diverged sharply: over the last 12 months PCQ outperformed by 61.0 percentage points (+11.3% for PCQ against -49.7% for VXX). Note the risk asymmetry: VXX runs 4.9 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.
PCQ vs VXX: side by side
| PCQ (PIMCO California Municipal Income Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +11.3% | -49.7% |
| 5-year return | -40.9% | -95.6% |
| Volatility (ann.) | 12.5% | 60.9% |
| Beta vs S&P 500 | 0.25 | -3.31 |
| Max drawdown (3Y) | -17.4% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | 291.0 | – |
| Dividend yield | 4.94% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PCQ | VXX |
|---|---|---|
| 2022 | -14.7% | -23.8% |
| 2023 | -35.4% | -72.5% |
| 2024 | +1.5% | -26.2% |
| 2025 | +1.5% | -42.2% |
| 2026 | +3.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCQ and VXX good diversifiers for each other?
Yes: at -0.27, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between PCQ and VXX?
Using weekly returns as of 2026-08-27: -0.27 over 3 years, with -0.44 over the last year and -0.24 over 5 years.
Is VXX a good diversifier for PCQ?
Yes: at -0.27, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.27 mean?
A reading of -0.27 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/pcq-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcq-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PCQ correlations · VXX correlations
