VXX vs XFLT: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and XAI Floating Rate & Alternative Income Trust (XFLT) trade together? Their weekly returns over three years give a correlation of -0.36, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XFLT?
On 3 years of weekly data the VXX/XFLT correlation comes out at -0.36, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.42 lands near the 3-year figure. The 5-year figure is -0.34, and annualized covariance runs at -382.1 %².
Among the 2872 assets we track against VXX, XFLT ranks #1616 by 3-year correlation. The last year tells two different stories: XFLT led by 33.2 percentage points, -49.7% for VXX against -16.5% for XFLT. Note the risk asymmetry: VXX runs 3.4 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 XFLT: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XFLT (XAI Floating Rate & Alternative Income Trust) | |
|---|---|---|
| 1-year return | -49.7% | -16.5% |
| 5-year return | -95.6% | -11.0% |
| Volatility (ann.) | 60.9% | 17.7% |
| Beta vs S&P 500 | -3.31 | 0.36 |
| Max drawdown (3Y) | -83.3% | -47.0% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXX | XFLT |
|---|---|---|
| 2022 | -23.8% | -20.3% |
| 2023 | -72.5% | +30.4% |
| 2024 | -26.2% | +7.4% |
| 2025 | -42.2% | -15.3% |
| 2026 | -31.6% | -9.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XFLT good diversifiers for each other?
Yes. With a correlation of -0.36, VXX and XFLT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XFLT?
The VXX/XFLT correlation stands at -0.36 on a 3-year window (1 year: -0.42, 5 years: -0.34), computed from weekly returns as of 2026-08-27.
Is XFLT a good diversifier for VXX?
Yes. With a correlation of -0.36, VXX and XFLT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.36 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-xflt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vxx-vs-xflt/)
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Related comparisons
Hubs: VXX correlations · XFLT correlations
