PCQ vs VXZ: Correlation
Measured on weekly returns over the past three years, PIMCO California Municipal Income Fund (PCQ) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.32, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCQ and VXZ?
Across a 3-year window, the weekly returns of PCQ and VXZ correlate at -0.32, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.49) runs below the 3-year figure (-0.32). Stretching to 5 years gives -0.18, with an annualized covariance of -101.6 %².
VXZ is close to the least connected end of PCQ's tracked universe, ranking #10 of 10. The last year tells two different stories: PCQ led by 27.4 percentage points, +11.3% for PCQ against -16.1% for VXZ. Risk is not evenly split, since VXZ carries 2.0 times the volatility of the other side.
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 VXZ: side by side
| PCQ (PIMCO California Municipal Income Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +11.3% | -16.1% |
| 5-year return | -40.9% | -53.1% |
| Volatility (ann.) | 12.5% | 25.6% |
| Beta vs S&P 500 | 0.25 | -1.31 |
| Max drawdown (3Y) | -17.4% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 291.0 | – |
| Dividend yield | 4.94% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PCQ | VXZ |
|---|---|---|
| 2022 | -14.7% | +0.5% |
| 2023 | -35.4% | -44.0% |
| 2024 | +1.5% | -12.7% |
| 2025 | +1.5% | +5.7% |
| 2026 | +3.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCQ and VXZ good diversifiers for each other?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between PCQ and VXZ?
As of 2026-08-27, the correlation of weekly returns between PCQ and VXZ is -0.32 over 3 years, -0.49 over 1 year and -0.18 over 5 years.
Is VXZ a good diversifier for PCQ?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.32 mean?
On the −1 to +1 scale, -0.32 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/pcq-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcq-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PCQ correlations · VXZ correlations
