TSM vs VXX: Correlation
Measured on weekly returns over the past three years, Taiwan Semiconductor Manufacturing Company Ltd. (TSM) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.55, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TSM and VXX?
Across a 3-year window, the weekly returns of TSM and VXX correlate at -0.55, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.53 lands near the 3-year figure. Stretching to 5 years gives -0.45, with an annualized covariance of -1163.0 %².
Among the 16 assets we track against TSM, VXX sits near the bottom by co-movement, at rank #15. Their recent paths diverged sharply: over the last 12 months TSM outperformed by 130.2 percentage points (+80.5% for TSM against -49.7% for VXX). Note the risk asymmetry: VXX runs 1.7 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.
TSM vs VXX: side by side
| TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +80.5% | -49.7% |
| 5-year return | +289.6% | -95.6% |
| Volatility (ann.) | 34.9% | 60.9% |
| Beta vs S&P 500 | 1.59 | -3.31 |
| Max drawdown (3Y) | -36.8% | -83.3% |
| Market cap | $2,216.2B | – |
| P/E (trailing) | 31.1 | – |
| Dividend yield | 6.22% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | TSM | VXX |
|---|---|---|
| 2022 | -36.7% | -23.8% |
| 2023 | +42.3% | -72.5% |
| 2024 | +92.6% | -26.2% |
| 2025 | +55.9% | -42.2% |
| 2026 | +41.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TSM and VXX good diversifiers for each other?
Yes. With a correlation of -0.55, TSM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between TSM and VXX?
As of 2026-08-27, the correlation of weekly returns between TSM and VXX is -0.55 over 3 years, -0.53 over 1 year and -0.45 over 5 years.
Is VXX a good diversifier for TSM?
Yes. With a correlation of -0.55, TSM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.55 mean?
On the −1 to +1 scale, -0.55 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/tsm-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tsm-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TSM correlations · VXX correlations
