PML vs VXZ: Correlation
How closely do Pimco Municipal Income Fund II (PML) 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 -0.34, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PML and VXZ?
Across a 3-year window, the weekly returns of PML and VXZ correlate at -0.34, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.27) sits close to the 3-year figure. Stretching to 5 years gives -0.28, with an annualized covariance of -124.7 %².
Out of 18 assets tracked against PML, VXZ lands near the bottom at #18. The last year tells two different stories: PML led by 24.8 percentage points, +8.7% for PML against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 1.8 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.
PML vs VXZ: side by side
| PML (Pimco Municipal Income Fund II) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +8.7% | -16.1% |
| 5-year return | -34.6% | -53.1% |
| Volatility (ann.) | 14.5% | 25.6% |
| Beta vs S&P 500 | 0.30 | -1.31 |
| Max drawdown (3Y) | -21.5% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 735.0 | – |
| Dividend yield | 6.48% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PML | VXZ |
|---|---|---|
| 2022 | -34.1% | +0.5% |
| 2023 | -3.0% | -44.0% |
| 2024 | +3.0% | -12.7% |
| 2025 | -0.8% | +5.7% |
| 2026 | +1.7% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PML and VXZ good diversifiers for each other?
Yes: at -0.34, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between PML and VXZ?
The PML/VXZ correlation stands at -0.34 on a 3-year window (1 year: -0.27, 5 years: -0.28), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for PML?
Yes: at -0.34, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.34 mean?
A reading of -0.34 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/pml-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pml-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PML correlations · VXZ correlations
