STEM vs VXZ: Correlation
Stem, Inc. (STEM) 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 -0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STEM and VXZ?
On 3 years of weekly data the STEM/VXZ correlation comes out at -0.22, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.36) runs below the 3-year figure (-0.22). The 5-year figure is -0.27, and annualized covariance runs at -732.6 %².
Among the 24 assets we track against STEM, VXZ sits near the bottom by co-movement, at rank #23. Their recent paths diverged sharply: over the last 12 months VXZ outperformed by 48.8 percentage points (-64.9% for STEM against -16.1% for VXZ). Risk is not evenly split, since STEM carries 5.1 times the volatility of the other side.
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.
STEM vs VXZ: side by side
| STEM (Stem, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -64.9% | -16.1% |
| 5-year return | -98.9% | -53.1% |
| Volatility (ann.) | 129.9% | 25.6% |
| Beta vs S&P 500 | 2.49 | -1.31 |
| Max drawdown (3Y) | -95.5% | -36.4% |
| Market cap | $0.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | STEM | VXZ |
|---|---|---|
| 2022 | -52.9% | +0.5% |
| 2023 | -56.6% | -44.0% |
| 2024 | -84.5% | -12.7% |
| 2025 | +24.8% | +5.7% |
| 2026 | -62.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are STEM and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
FAQ
What is the correlation between STEM and VXZ?
The STEM/VXZ correlation stands at -0.22 on a 3-year window (1 year: -0.36, 5 years: -0.27), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for STEM?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
What does a correlation of -0.22 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/stem-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/stem-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: STEM correlations · VXZ correlations
