VXX vs WDI: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Western Asset Diversified Income Fund (WDI) trade together? Their weekly returns over three years give a correlation of -0.51, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and WDI?
On 3 years of weekly data the VXX/WDI correlation comes out at -0.51, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.43 over 1 year against -0.51 over 3. The 5-year figure is -0.42, and annualized covariance runs at -362.7 %².
Within VXX's tracked universe of 2872 assets, WDI comes in at #2593 by 3-year correlation. Correlation aside, the last 12 months split them widely, with WDI ahead by 47.4 points (-49.7% versus -2.3%). Note the risk asymmetry: VXX runs 5.2 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.
VXX vs WDI: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | -49.7% | -2.3% |
| 5-year return | -95.6% | +14.7% |
| Volatility (ann.) | 60.9% | 11.7% |
| Beta vs S&P 500 | -3.31 | 0.46 |
| Max drawdown (3Y) | -83.3% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 9.3 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXX | WDI |
|---|---|---|
| 2022 | -23.8% | -23.3% |
| 2023 | -72.5% | +25.1% |
| 2024 | -26.2% | +13.9% |
| 2025 | -42.2% | +10.7% |
| 2026 | -31.6% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and WDI good diversifiers for each other?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXX and WDI?
The VXX/WDI correlation stands at -0.51 on a 3-year window (1 year: -0.43, 5 years: -0.42), computed from weekly returns as of 2026-08-27.
Is WDI a good diversifier for VXX?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
What does a correlation of -0.51 mean?
A reading of -0.51 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/vxx-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxx-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXX correlations · WDI correlations
