VXX vs WTS: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Watts Water Technologies, Inc. (WTS) trade together? Their weekly returns over three years give a correlation of -0.46, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and WTS?
Across a 3-year window, the weekly returns of VXX and WTS correlate at -0.46, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.36) than the 3-year average (-0.46). Stretching to 5 years gives -0.40, with an annualized covariance of -689.6 %².
Within VXX's tracked universe of 2872 assets, WTS comes in at #2370 by 3-year correlation. The last year tells two different stories: WTS led by 81.6 percentage points, -49.7% for VXX against +31.9% for WTS. Risk is not evenly split, since VXX carries 2.5 times the volatility of the other side.
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 WTS: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | -49.7% | +31.9% |
| 5-year return | -95.6% | +125.4% |
| Volatility (ann.) | 60.9% | 24.6% |
| Beta vs S&P 500 | -3.31 | 0.89 |
| Max drawdown (3Y) | -83.3% | -19.5% |
| Market cap | – | $12.4B |
| P/E (trailing) | – | 32.5 |
| Dividend yield | 0.00% | 0.58% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXX | WTS |
|---|---|---|
| 2022 | -23.8% | -24.1% |
| 2023 | -72.5% | +43.6% |
| 2024 | -26.2% | -1.6% |
| 2025 | -42.2% | +36.8% |
| 2026 | -31.6% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and WTS good diversifiers for each other?
Yes. With a correlation of -0.46, VXX and WTS have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and WTS?
The VXX/WTS correlation stands at -0.46 on a 3-year window (1 year: -0.36, 5 years: -0.40), computed from weekly returns as of 2026-08-27.
Is WTS a good diversifier for VXX?
Yes. With a correlation of -0.46, VXX and WTS have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.46 mean?
On the −1 to +1 scale, -0.46 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.
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Related comparisons
Hubs: VXX correlations · WTS correlations
