VXZ vs WDI: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Western Asset Diversified Income Fund (WDI) show a negative relationship: their 3-year correlation of weekly returns is -0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and WDI?
Across a 3-year window, the weekly returns of VXZ and WDI correlate at -0.52, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.46) sits close to the 3-year figure. Stretching to 5 years gives -0.48, with an annualized covariance of -155.0 %².
Among the 2840 assets we track against VXZ, WDI ranks #2600 by 3-year correlation. Over the last 12 months WDI came out ahead by 13.8 percentage points (-16.1% against -2.3%). Risk is not evenly split, since VXZ carries 2.2 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.
VXZ vs WDI: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | -16.1% | -2.3% |
| 5-year return | -53.1% | +14.7% |
| Volatility (ann.) | 25.6% | 11.7% |
| Beta vs S&P 500 | -1.31 | 0.46 |
| Max drawdown (3Y) | -36.4% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 9.3 |
| Dividend yield | – | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXZ | WDI |
|---|---|---|
| 2022 | +0.5% | -23.3% |
| 2023 | -44.0% | +25.1% |
| 2024 | -12.7% | +13.9% |
| 2025 | +5.7% | +10.7% |
| 2026 | -10.5% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and WDI good diversifiers for each other?
Yes. With a correlation of -0.52, VXZ and WDI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and WDI?
Using weekly returns as of 2026-08-27: -0.52 over 3 years, with -0.46 over the last year and -0.48 over 5 years.
Is WDI a good diversifier for VXZ?
Yes. With a correlation of -0.52, VXZ and WDI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.52 mean?
A reading of -0.52 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/vxz-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxz-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXZ correlations · WDI correlations
