PSEC vs VXZ: Correlation
Prospect Capital Corporation - Closed End Fund (PSEC) 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 -0.28.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSEC and VXZ?
Over the past 3 years, PSEC and VXZ moved with a correlation of -0.28, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.20) sits close to the 3-year figure. Over 5 years the correlation is -0.35, and the annualized covariance of weekly returns is -222.7 %².
Among the 12 assets we track against PSEC, VXZ sits near the bottom by co-movement, at rank #12. On 12-month performance PSEC holds a 10.3-point edge, -5.8% against -16.1%.
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 VXZ: side by side
| PSEC (Prospect Capital Corporation - Closed End Fund) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -5.8% | -16.1% |
| 5-year return | -45.5% | -53.1% |
| Volatility (ann.) | 31.6% | 25.6% |
| Beta vs S&P 500 | 0.59 | -1.31 |
| Max drawdown (3Y) | -50.5% | -36.4% |
| Market cap | $1.2B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 25.97% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PSEC | VXZ |
|---|---|---|
| 2022 | -8.6% | +0.5% |
| 2023 | -4.1% | -44.0% |
| 2024 | -18.2% | -12.7% |
| 2025 | -28.9% | +5.7% |
| 2026 | -1.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSEC and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.28 means the two rarely move for the same reasons.
FAQ
What is the correlation between PSEC and VXZ?
Using weekly returns as of 2026-08-27: -0.28 over 3 years, with -0.20 over the last year and -0.35 over 5 years.
Is VXZ a good diversifier for PSEC?
By historical standards, yes. A correlation of -0.28 means the two rarely move for the same reasons.
What does a correlation of -0.28 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/psec-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/psec-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PSEC correlations · VXZ correlations
