VXZ vs WEA: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Western Asset Bond Fund Share of Beneficial Interest (WEA) 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 WEA?
Across a 3-year window, the weekly returns of VXZ and WEA correlate at -0.52, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.68) runs below the 3-year figure (-0.52). Stretching to 5 years gives -0.45, with an annualized covariance of -140.0 %².
Among the 2840 assets we track against VXZ, WEA ranks #2601 by 3-year correlation. The last year tells two different stories: WEA led by 18.3 percentage points, -16.1% for VXZ against +2.2% for WEA. Note the risk asymmetry: VXZ runs 2.4 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.
VXZ vs WEA: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | WEA (Western Asset Bond Fund Share of Beneficial Interest) | |
|---|---|---|
| 1-year return | -16.1% | +2.2% |
| 5-year return | -53.1% | +4.5% |
| Volatility (ann.) | 25.6% | 10.5% |
| Beta vs S&P 500 | -1.31 | 0.29 |
| Max drawdown (3Y) | -36.4% | -11.4% |
| Market cap | – | – |
| P/E (trailing) | – | 12.6 |
| Dividend yield | – | 4.03% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXZ | WEA |
|---|---|---|
| 2022 | +0.5% | -20.2% |
| 2023 | -44.0% | +9.6% |
| 2024 | -12.7% | +7.7% |
| 2025 | +5.7% | +10.6% |
| 2026 | -10.5% | -0.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and WEA good diversifiers for each other?
Yes. With a correlation of -0.52, VXZ and WEA have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and WEA?
Using weekly returns as of 2026-08-27: -0.52 over 3 years, with -0.68 over the last year and -0.45 over 5 years.
Is WEA a good diversifier for VXZ?
Yes. With a correlation of -0.52, VXZ and WEA 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
$ curl https://www.pairbook.io/api/v1/pairs/vxz-vs-wea.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxz-vs-wea/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXZ correlations · WEA correlations
