PMM vs VXX: Correlation
Measured on weekly returns over the past three years, Franklin Managed Municipal Income Trust Shares of (PMM) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.29, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PMM and VXX?
Over the past 3 years, PMM and VXX moved with a correlation of -0.29, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.30 lands near the 3-year figure. Over 5 years the correlation is -0.27, and the annualized covariance of weekly returns is -227.1 %².
Among the 11 assets we track against PMM, VXX sits near the bottom by co-movement, at rank #10. Correlation aside, the last 12 months split them widely, with PMM ahead by 63.5 points (+13.8% versus -49.7%). Risk is not evenly split, since VXX carries 4.8 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.
PMM vs VXX: side by side
| PMM (Franklin Managed Municipal Income Trust Shares of) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +13.8% | -49.7% |
| 5-year return | -5.6% | -95.6% |
| Volatility (ann.) | 12.6% | 60.9% |
| Beta vs S&P 500 | 0.35 | -3.31 |
| Max drawdown (3Y) | -12.7% | -83.3% |
| Market cap | $0.3B | – |
| P/E (trailing) | 11.4 | – |
| Dividend yield | 4.84% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PMM | VXX |
|---|---|---|
| 2022 | -24.1% | -23.8% |
| 2023 | +1.9% | -72.5% |
| 2024 | +2.9% | -26.2% |
| 2025 | +10.6% | -42.2% |
| 2026 | +3.5% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PMM and VXX good diversifiers for each other?
Yes. With a correlation of -0.29, PMM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PMM and VXX?
The PMM/VXX correlation stands at -0.29 on a 3-year window (1 year: -0.30, 5 years: -0.27), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for PMM?
Yes. With a correlation of -0.29, PMM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.29 mean?
On the −1 to +1 scale, -0.29 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/pmm-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pmm-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PMM correlations · VXX correlations
