PPT vs VXZ: Correlation
How closely do Franklin Premier Income Trust Shares of Beneficial Interest (PPT) 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 -0.37, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPT and VXZ?
On 3 years of weekly data the PPT/VXZ correlation comes out at -0.37, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.45) sits close to the 3-year figure. The 5-year figure is -0.40, and annualized covariance runs at -81.3 %².
Among the 12 assets we track against PPT, VXZ sits near the bottom by co-movement, at rank #11. Their recent paths diverged sharply: over the last 12 months PPT outperformed by 18.5 percentage points (+2.4% for PPT against -16.1% for VXZ). One caveat on sizing: VXZ is 3.0 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.
PPT vs VXZ: side by side
| PPT (Franklin Premier Income Trust Shares of Beneficial Interest) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +2.4% | -16.1% |
| 5-year return | +15.6% | -53.1% |
| Volatility (ann.) | 8.6% | 25.6% |
| Beta vs S&P 500 | 0.24 | -1.31 |
| Max drawdown (3Y) | -5.9% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 11.1 | – |
| Dividend yield | 9.07% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PPT | VXZ |
|---|---|---|
| 2022 | -7.7% | +0.5% |
| 2023 | +7.4% | -44.0% |
| 2024 | +8.8% | -12.7% |
| 2025 | +8.4% | +5.7% |
| 2026 | +3.4% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PPT and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.37 means the two rarely move for the same reasons.
FAQ
What is the correlation between PPT and VXZ?
The PPT/VXZ correlation stands at -0.37 on a 3-year window (1 year: -0.45, 5 years: -0.40), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for PPT?
By historical standards, yes. A correlation of -0.37 means the two rarely move for the same reasons.
What does a correlation of -0.37 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/ppt-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ppt-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PPT correlations · VXZ correlations
