TDF vs VXX: Correlation
Templeton Dragon Fund, Inc. (TDF) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.38.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TDF and VXX?
On 3 years of weekly data the TDF/VXX correlation comes out at -0.38, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.61 versus -0.38 over 3 years. The 5-year figure is -0.32, and annualized covariance runs at -510.0 %².
Among the 21 assets we track against TDF, VXX sits near the bottom by co-movement, at rank #21. The last year tells two different stories: TDF led by 53.1 percentage points, +3.4% for TDF against -49.7% for VXX. Note the risk asymmetry: VXX runs 2.7 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.
TDF vs VXX: side by side
| TDF (Templeton Dragon Fund, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +3.4% | -49.7% |
| 5-year return | -29.3% | -95.6% |
| Volatility (ann.) | 22.2% | 60.9% |
| Beta vs S&P 500 | 0.64 | -3.31 |
| Max drawdown (3Y) | -22.2% | -83.3% |
| Market cap | $0.3B | – |
| P/E (trailing) | 3.6 | – |
| Dividend yield | 3.68% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | TDF | VXX |
|---|---|---|
| 2022 | -32.9% | -23.8% |
| 2023 | -20.1% | -72.5% |
| 2024 | +5.5% | -26.2% |
| 2025 | +37.7% | -42.2% |
| 2026 | -1.2% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TDF and VXX good diversifiers for each other?
Yes: at -0.38, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between TDF and VXX?
Using weekly returns as of 2026-08-27: -0.38 over 3 years, with -0.61 over the last year and -0.32 over 5 years.
Is VXX a good diversifier for TDF?
Yes: at -0.38, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.38 mean?
On the −1 to +1 scale, -0.38 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/tdf-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tdf-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TDF correlations · VXX correlations
