PSEC vs VXX: Correlation
How closely do Prospect Capital Corporation - Closed End Fund (PSEC) 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 -0.24, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSEC and VXX?
On 3 years of weekly data the PSEC/VXX correlation comes out at -0.24, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.08 versus -0.24 over 3 years. The 5-year figure is -0.31, and annualized covariance runs at -459.2 %².
VXX is close to the least connected end of PSEC's tracked universe, ranking #11 of 12. Their recent paths diverged sharply: over the last 12 months PSEC outperformed by 43.9 percentage points (-5.8% for PSEC against -49.7% for VXX). Note the risk asymmetry: VXX runs 1.9 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.
PSEC vs VXX: side by side
| PSEC (Prospect Capital Corporation - Closed End Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -5.8% | -49.7% |
| 5-year return | -45.5% | -95.6% |
| Volatility (ann.) | 31.6% | 60.9% |
| Beta vs S&P 500 | 0.59 | -3.31 |
| Max drawdown (3Y) | -50.5% | -83.3% |
| Market cap | $1.2B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 25.97% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PSEC | VXX |
|---|---|---|
| 2022 | -8.6% | -23.8% |
| 2023 | -4.1% | -72.5% |
| 2024 | -18.2% | -26.2% |
| 2025 | -28.9% | -42.2% |
| 2026 | -1.5% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSEC and VXX good diversifiers for each other?
Yes: at -0.24, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between PSEC and VXX?
The PSEC/VXX correlation stands at -0.24 on a 3-year window (1 year: -0.08, 5 years: -0.31), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for PSEC?
Yes: at -0.24, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.24 mean?
A reading of -0.24 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/psec-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/psec-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PSEC correlations · VXX correlations
