STWD vs VXZ: Correlation
How closely do STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.53, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STWD and VXZ?
Over the past 3 years, STWD and VXZ moved with a correlation of -0.53, which is negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.42) than the 3-year average (-0.53). Over 5 years the correlation is -0.56, and the annualized covariance of weekly returns is -264.5 %².
Among the 26 assets we track against STWD, VXZ sits near the bottom by co-movement, at rank #26. Their 12-month results are close: -11.8% for STWD 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.
STWD vs VXZ: side by side
| STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -11.8% | -16.1% |
| 5-year return | +0.5% | -53.1% |
| Volatility (ann.) | 19.3% | 25.6% |
| Beta vs S&P 500 | 0.65 | -1.31 |
| Max drawdown (3Y) | -15.8% | -36.4% |
| Market cap | $6.1B | – |
| P/E (trailing) | 27.0 | – |
| Dividend yield | 12.07% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | STWD | VXZ |
|---|---|---|
| 2022 | -17.3% | +0.5% |
| 2023 | +26.7% | -44.0% |
| 2024 | -0.6% | -12.7% |
| 2025 | +4.9% | +5.7% |
| 2026 | -6.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are STWD and VXZ good diversifiers for each other?
Yes: at -0.53, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between STWD and VXZ?
Using weekly returns as of 2026-08-27: -0.53 over 3 years, with -0.42 over the last year and -0.56 over 5 years.
Is VXZ a good diversifier for STWD?
Yes: at -0.53, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.53 mean?
On the −1 to +1 scale, -0.53 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-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/stwd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: STWD correlations · VXZ correlations
