VKQ vs VXZ: Correlation
How closely do Invesco Municipal Trust (VKQ) 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 -0.37, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VKQ and VXZ?
On 3 years of weekly data the VKQ/VXZ correlation comes out at -0.37, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.46) sits close to the 3-year figure. The 5-year figure is -0.31, and annualized covariance runs at -109.6 %².
VXZ is close to the least connected end of VKQ's tracked universe, ranking #14 of 14. The last year tells two different stories: VKQ led by 32.0 percentage points, +15.9% for VKQ against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 2.2 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.
VKQ vs VXZ: side by side
| VKQ (Invesco Municipal Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +15.9% | -16.1% |
| 5-year return | -4.8% | -53.1% |
| Volatility (ann.) | 11.7% | 25.6% |
| Beta vs S&P 500 | 0.30 | -1.31 |
| Max drawdown (3Y) | -11.7% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 32.7 | – |
| Dividend yield | 7.72% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VKQ | VXZ |
|---|---|---|
| 2022 | -22.3% | +0.5% |
| 2023 | +0.9% | -44.0% |
| 2024 | +9.7% | -12.7% |
| 2025 | +6.5% | +5.7% |
| 2026 | +6.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VKQ and VXZ good diversifiers for each other?
Yes. With a correlation of -0.37, VKQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VKQ and VXZ?
As of 2026-08-27, the correlation of weekly returns between VKQ and VXZ is -0.37 over 3 years, -0.46 over 1 year and -0.31 over 5 years.
Is VXZ a good diversifier for VKQ?
Yes. With a correlation of -0.37, VKQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.37 mean?
On the −1 to +1 scale, -0.37 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/vkq-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vkq-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VKQ correlations · VXZ correlations
