PPT vs VXX: Correlation
How closely do Franklin Premier Income Trust Shares of Beneficial Interest (PPT) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.38, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPT and VXX?
On 3 years of weekly data the PPT/VXX correlation comes out at -0.38, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.47) sits close to the 3-year figure. The 5-year figure is -0.37, and annualized covariance runs at -200.6 %².
Among the 12 assets we track against PPT, VXX sits near the bottom by co-movement, at rank #12. The last year tells two different stories: PPT led by 52.1 percentage points, +2.4% for PPT against -49.7% for VXX. One caveat on sizing: VXX is 7.1 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.
PPT vs VXX: side by side
| PPT (Franklin Premier Income Trust Shares of Beneficial Interest) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +2.4% | -49.7% |
| 5-year return | +15.6% | -95.6% |
| Volatility (ann.) | 8.6% | 60.9% |
| Beta vs S&P 500 | 0.24 | -3.31 |
| Max drawdown (3Y) | -5.9% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | 11.1 | – |
| Dividend yield | 9.07% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PPT | VXX |
|---|---|---|
| 2022 | -7.7% | -23.8% |
| 2023 | +7.4% | -72.5% |
| 2024 | +8.8% | -26.2% |
| 2025 | +8.4% | -42.2% |
| 2026 | +3.4% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PPT and VXX good diversifiers for each other?
Yes. With a correlation of -0.38, PPT and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PPT and VXX?
Using weekly returns as of 2026-08-27: -0.38 over 3 years, with -0.47 over the last year and -0.37 over 5 years.
Is VXX a good diversifier for PPT?
Yes. With a correlation of -0.38, PPT and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.38 mean?
A reading of -0.38 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/ppt-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ppt-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PPT correlations · VXX correlations
