PMM vs VXZ: Correlation
Franklin Managed Municipal Income Trust Shares of (PMM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.32.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PMM and VXZ?
On 3 years of weekly data the PMM/VXZ correlation comes out at -0.32, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.35) sits close to the 3-year figure. The 5-year figure is -0.27, and annualized covariance runs at -104.3 %².
Among the 11 assets we track against PMM, VXZ sits near the bottom by co-movement, at rank #11. Their recent paths diverged sharply: over the last 12 months PMM outperformed by 29.9 percentage points (+13.8% for PMM against -16.1% for VXZ). One caveat on sizing: VXZ is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VXZ: side by side
| PMM (Franklin Managed Municipal Income Trust Shares of) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +13.8% | -16.1% |
| 5-year return | -5.6% | -53.1% |
| Volatility (ann.) | 12.6% | 25.6% |
| Beta vs S&P 500 | 0.35 | -1.31 |
| Max drawdown (3Y) | -12.7% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 11.4 | – |
| Dividend yield | 4.84% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PMM | VXZ |
|---|---|---|
| 2022 | -24.1% | +0.5% |
| 2023 | +1.9% | -44.0% |
| 2024 | +2.9% | -12.7% |
| 2025 | +10.6% | +5.7% |
| 2026 | +3.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PMM 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 PMM and VXZ?
As of 2026-08-27, the correlation of weekly returns between PMM and VXZ is -0.32 over 3 years, -0.35 over 1 year and -0.27 over 5 years.
Is VXZ a good diversifier for PMM?
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?
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/pmm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pmm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PMM correlations · VXZ correlations
