RWT vs VXX: Correlation
How closely do Redwood Trust, Inc. (RWT) 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 -0.42, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RWT and VXX?
Across a 3-year window, the weekly returns of RWT and VXX correlate at -0.42, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.22) than the 3-year average (-0.42). Stretching to 5 years gives -0.44, with an annualized covariance of -802.6 %².
Out of 12 assets tracked against RWT, VXX lands near the bottom at #12. The last year tells two different stories: RWT led by 37.9 percentage points, -11.8% for RWT against -49.7% for VXX. One caveat on sizing: VXX is 1.9 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.
RWT vs VXX: side by side
| RWT (Redwood Trust, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -11.8% | -49.7% |
| 5-year return | -35.7% | -95.6% |
| Volatility (ann.) | 31.6% | 60.9% |
| Beta vs S&P 500 | 0.87 | -3.31 |
| Max drawdown (3Y) | -33.8% | -83.3% |
| Market cap | $0.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 15.62% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RWT | VXX |
|---|---|---|
| 2022 | -42.3% | -23.8% |
| 2023 | +21.6% | -72.5% |
| 2024 | -2.6% | -26.2% |
| 2025 | -4.1% | -42.2% |
| 2026 | -10.2% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RWT and VXX good diversifiers for each other?
Yes: at -0.42, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between RWT and VXX?
Using weekly returns as of 2026-08-27: -0.42 over 3 years, with -0.22 over the last year and -0.44 over 5 years.
Is VXX a good diversifier for RWT?
Yes: at -0.42, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.42 mean?
On the −1 to +1 scale, -0.42 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/rwt-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/rwt-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: RWT correlations · VXX correlations
