RWT vs VXZ: Correlation
Measured on weekly returns over the past three years, Redwood Trust, Inc. (RWT) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.41, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RWT and VXZ?
On 3 years of weekly data the RWT/VXZ correlation comes out at -0.41, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.28 versus -0.41 over 3 years. The 5-year figure is -0.47, and annualized covariance runs at -334.3 %².
Out of 12 assets tracked against RWT, VXZ lands near the bottom at #11. Their 12-month results are close: -11.8% for RWT against -16.1% for VXZ.
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 VXZ: side by side
| RWT (Redwood Trust, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -11.8% | -16.1% |
| 5-year return | -35.7% | -53.1% |
| Volatility (ann.) | 31.6% | 25.6% |
| Beta vs S&P 500 | 0.87 | -1.31 |
| Max drawdown (3Y) | -33.8% | -36.4% |
| Market cap | $0.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 15.62% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RWT | VXZ |
|---|---|---|
| 2022 | -42.3% | +0.5% |
| 2023 | +21.6% | -44.0% |
| 2024 | -2.6% | -12.7% |
| 2025 | -4.1% | +5.7% |
| 2026 | -10.2% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RWT and VXZ good diversifiers for each other?
Yes: at -0.41, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between RWT and VXZ?
The RWT/VXZ correlation stands at -0.41 on a 3-year window (1 year: -0.28, 5 years: -0.47), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for RWT?
Yes: at -0.41, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.41 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/rwt-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/rwt-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: RWT correlations · VXZ correlations
