TSM vs VXZ: Correlation
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) 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 -0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TSM and VXZ?
Across a 3-year window, the weekly returns of TSM and VXZ correlate at -0.48, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.43) sits close to the 3-year figure. Stretching to 5 years gives -0.42, with an annualized covariance of -424.4 %².
VXZ is close to the least connected end of TSM's tracked universe, ranking #14 of 16. Correlation aside, the last 12 months split them widely, with TSM ahead by 96.6 points (+80.5% versus -16.1%).
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 VXZ: side by side
| TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +80.5% | -16.1% |
| 5-year return | +289.6% | -53.1% |
| Volatility (ann.) | 34.9% | 25.6% |
| Beta vs S&P 500 | 1.59 | -1.31 |
| Max drawdown (3Y) | -36.8% | -36.4% |
| Market cap | $2,216.2B | – |
| P/E (trailing) | 31.1 | – |
| Dividend yield | 6.22% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | TSM | VXZ |
|---|---|---|
| 2022 | -36.7% | +0.5% |
| 2023 | +42.3% | -44.0% |
| 2024 | +92.6% | -12.7% |
| 2025 | +55.9% | +5.7% |
| 2026 | +41.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TSM and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.48 means the two rarely move for the same reasons.
FAQ
What is the correlation between TSM and VXZ?
The TSM/VXZ correlation stands at -0.48 on a 3-year window (1 year: -0.43, 5 years: -0.42), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for TSM?
By historical standards, yes. A correlation of -0.48 means the two rarely move for the same reasons.
What does a correlation of -0.48 mean?
A reading of -0.48 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tsm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tsm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TSM correlations · VXZ correlations
