VXX vs XYL: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Xylem Inc. (XYL) show a negative relationship: their 3-year correlation of weekly returns is -0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XYL?
Over the past 3 years, VXX and XYL moved with a correlation of -0.54, which is negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.32) than the 3-year average (-0.54). Over 5 years the correlation is -0.50, and the annualized covariance of weekly returns is -786.3 %².
Among the 2872 assets we track against VXX, XYL ranks #2680 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XYL outperformed by 28.6 percentage points (-49.7% for VXX against -21.1% for XYL). One caveat on sizing: VXX is 2.5 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 XYL: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | -49.7% | -21.1% |
| 5-year return | -95.6% | -12.5% |
| Volatility (ann.) | 60.9% | 23.9% |
| Beta vs S&P 500 | -3.31 | 0.96 |
| Max drawdown (3Y) | -83.3% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 0.00% | 1.47% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | VXX | XYL |
|---|---|---|
| 2022 | -23.8% | -6.6% |
| 2023 | -72.5% | +4.8% |
| 2024 | -26.2% | +2.6% |
| 2025 | -42.2% | +18.8% |
| 2026 | -31.6% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XYL good diversifiers for each other?
Yes. With a correlation of -0.54, VXX and XYL have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XYL?
The VXX/XYL correlation stands at -0.54 on a 3-year window (1 year: -0.32, 5 years: -0.50), computed from weekly returns as of 2026-08-27.
Is XYL a good diversifier for VXX?
Yes. With a correlation of -0.54, VXX and XYL have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.54 mean?
A reading of -0.54 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-xyl.json
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[](https://www.pairbook.io/pair/vxx-vs-xyl/)
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Related comparisons
Hubs: VXX correlations · XYL correlations
