VXX vs WSO: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Watsco, Inc. (WSO) show a negative relationship: their 3-year correlation of weekly returns is -0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and WSO?
On 3 years of weekly data the VXX/WSO correlation comes out at -0.40, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.29) runs above the 3-year figure (-0.40). The 5-year figure is -0.42, and annualized covariance runs at -785.9 %².
By 3-year correlation, WSO places #1959 of the 2872 assets tracked against VXX. The last year tells two different stories: WSO led by 28.9 percentage points, -49.7% for VXX against -20.8% for WSO. One caveat on sizing: VXX is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 WSO: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | -49.7% | -20.8% |
| 5-year return | -95.6% | +28.2% |
| Volatility (ann.) | 60.9% | 31.9% |
| Beta vs S&P 500 | -3.31 | 1.05 |
| Max drawdown (3Y) | -83.3% | -44.1% |
| Market cap | – | $12.9B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | 0.00% | 3.91% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXX | WSO |
|---|---|---|
| 2022 | -23.8% | -17.7% |
| 2023 | -72.5% | +77.0% |
| 2024 | -26.2% | +13.2% |
| 2025 | -42.2% | -27.0% |
| 2026 | -31.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and WSO good diversifiers for each other?
Yes: at -0.40, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXX and WSO?
As of 2026-08-27, the correlation of weekly returns between VXX and WSO is -0.40 over 3 years, -0.29 over 1 year and -0.42 over 5 years.
Is WSO a good diversifier for VXX?
Yes: at -0.40, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.40 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
$ curl https://www.pairbook.io/api/v1/pairs/vxx-vs-wso.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: VXX correlations · WSO correlations
