VEL vs VXX: Correlation
How closely do Velocity Financial, Inc. (VEL) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.26, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEL and VXX?
Over the past 3 years, VEL and VXX moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.23 over 1 year against -0.26 over 3. Over 5 years the correlation is -0.24, and the annualized covariance of weekly returns is -399.7 %².
Out of 10 assets tracked against VEL, VXX lands near the bottom at #8. The last year tells two different stories: VEL led by 44.6 percentage points, -5.1% for VEL against -49.7% for VXX. Note the risk asymmetry: VXX runs 2.4 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.
VEL vs VXX: side by side
| VEL (Velocity Financial, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -5.1% | -49.7% |
| 5-year return | +41.6% | -95.6% |
| Volatility (ann.) | 25.6% | 60.9% |
| Beta vs S&P 500 | 0.42 | -3.31 |
| Max drawdown (3Y) | -22.1% | -83.3% |
| Market cap | $0.7B | – |
| P/E (trailing) | 6.4 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VEL | VXX |
|---|---|---|
| 2022 | -29.6% | -23.8% |
| 2023 | +78.4% | -72.5% |
| 2024 | +13.6% | -26.2% |
| 2025 | +6.1% | -42.2% |
| 2026 | -12.9% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEL and VXX good diversifiers for each other?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VEL and VXX?
The VEL/VXX correlation stands at -0.26 on a 3-year window (1 year: -0.23, 5 years: -0.24), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for VEL?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.26 mean?
A reading of -0.26 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/vel-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vel-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VEL correlations · VXX correlations
