STWD vs VXX: Correlation
Measured on weekly returns over the past three years, STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.48, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STWD and VXX?
On 3 years of weekly data the STWD/VXX correlation comes out at -0.48, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.27 versus -0.48 over 3 years. The 5-year figure is -0.47, and annualized covariance runs at -566.2 %².
Among the 26 assets we track against STWD, VXX sits near the bottom by co-movement, at rank #25. The last year tells two different stories: STWD led by 37.9 percentage points, -11.8% for STWD against -49.7% for VXX. Note the risk asymmetry: VXX runs 3.2 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.
STWD vs VXX: side by side
| STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -11.8% | -49.7% |
| 5-year return | +0.5% | -95.6% |
| Volatility (ann.) | 19.3% | 60.9% |
| Beta vs S&P 500 | 0.65 | -3.31 |
| Max drawdown (3Y) | -15.8% | -83.3% |
| Market cap | $6.1B | – |
| P/E (trailing) | 27.0 | – |
| Dividend yield | 12.07% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | STWD | VXX |
|---|---|---|
| 2022 | -17.3% | -23.8% |
| 2023 | +26.7% | -72.5% |
| 2024 | -0.6% | -26.2% |
| 2025 | +4.9% | -42.2% |
| 2026 | -6.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are STWD and VXX good diversifiers for each other?
Yes. With a correlation of -0.48, STWD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between STWD and VXX?
The STWD/VXX correlation stands at -0.48 on a 3-year window (1 year: -0.27, 5 years: -0.47), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for STWD?
Yes. With a correlation of -0.48, STWD and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.48 mean?
On the −1 to +1 scale, -0.48 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/stwd-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/stwd-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: STWD correlations · VXX correlations
