VXX vs XBI: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of -0.52, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XBI?
Across a 3-year window, the weekly returns of VXX and XBI correlate at -0.52, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.32 versus -0.52 over 3 years. Stretching to 5 years gives -0.47, with an annualized covariance of -875.4 %².
By 3-year correlation, XBI places #2618 of the 2872 assets tracked against VXX. The last year tells two different stories: XBI led by 136.9 percentage points, -49.7% for VXX against +87.2% for XBI. One caveat on sizing: VXX is 2.2 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 XBI: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | -49.7% | +87.2% |
| 5-year return | -95.6% | +28.6% |
| Volatility (ann.) | 60.9% | 27.7% |
| Beta vs S&P 500 | -3.31 | 1.09 |
| Max drawdown (3Y) | -83.3% | -33.0% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | VXX | XBI |
|---|---|---|
| 2022 | -23.8% | -25.9% |
| 2023 | -72.5% | +7.6% |
| 2024 | -26.2% | +1.0% |
| 2025 | -42.2% | +35.9% |
| 2026 | -31.6% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XBI good diversifiers for each other?
Yes. With a correlation of -0.52, VXX and XBI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XBI?
The VXX/XBI correlation stands at -0.52 on a 3-year window (1 year: -0.32, 5 years: -0.47), computed from weekly returns as of 2026-08-27.
Is XBI a good diversifier for VXX?
Yes. With a correlation of -0.52, VXX and XBI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.52 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 · XBI correlations
