VXX vs WAT: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Waters Corporation (WAT) carry a correlation of -0.26, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and WAT?
Over the past 3 years, VXX and WAT moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.35) sits close to the 3-year figure. Over 5 years the correlation is -0.31, and the annualized covariance of weekly returns is -568.3 %².
By 3-year correlation, WAT places #523 of the 2872 assets tracked against VXX. Correlation aside, the last 12 months split them widely, with WAT ahead by 92.7 points (-49.7% versus +43.0%). 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.
VXX vs WAT: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | WAT (Waters Corporation) | |
|---|---|---|
| 1-year return | -49.7% | +43.0% |
| 5-year return | -95.6% | +2.0% |
| Volatility (ann.) | 60.9% | 35.3% |
| Beta vs S&P 500 | -3.31 | 0.89 |
| Max drawdown (3Y) | -83.3% | -33.4% |
| Market cap | – | $41.4B |
| P/E (trailing) | – | 105.3 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | Health Care |
Year-by-year returns
| Year | VXX | WAT |
|---|---|---|
| 2022 | -23.8% | -8.1% |
| 2023 | -72.5% | -3.9% |
| 2024 | -26.2% | +12.7% |
| 2025 | -42.2% | +2.4% |
| 2026 | -31.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and WAT good diversifiers for each other?
Yes. With a correlation of -0.26, VXX and WAT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and WAT?
As of 2026-08-27, the correlation of weekly returns between VXX and WAT is -0.26 over 3 years, -0.35 over 1 year and -0.31 over 5 years.
Is WAT a good diversifier for VXX?
Yes. With a correlation of -0.26, VXX and WAT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: VXX correlations · WAT correlations
