VXZ vs WSO: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Watsco, Inc. (WSO) show a negative relationship: their 3-year correlation of weekly returns is -0.44.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and WSO?
Over the past 3 years, VXZ and WSO moved with a correlation of -0.44, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.40) sits close to the 3-year figure. Over 5 years the correlation is -0.47, and the annualized covariance of weekly returns is -355.8 %².
By 3-year correlation, WSO places #2214 of the 2840 assets tracked against VXZ. Neither side won the trailing year by much: -16.1% against -20.8%.
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 WSO: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | -16.1% | -20.8% |
| 5-year return | -53.1% | +28.2% |
| Volatility (ann.) | 25.6% | 31.9% |
| Beta vs S&P 500 | -1.31 | 1.05 |
| Max drawdown (3Y) | -36.4% | -44.1% |
| Market cap | – | $12.9B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | – | 3.91% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VXZ | WSO |
|---|---|---|
| 2022 | +0.5% | -17.7% |
| 2023 | -44.0% | +77.0% |
| 2024 | -12.7% | +13.2% |
| 2025 | +5.7% | -27.0% |
| 2026 | -10.5% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and WSO good diversifiers for each other?
Yes. With a correlation of -0.44, VXZ and WSO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and WSO?
As of 2026-08-27, the correlation of weekly returns between VXZ and WSO is -0.44 over 3 years, -0.40 over 1 year and -0.47 over 5 years.
Is WSO a good diversifier for VXZ?
Yes. With a correlation of -0.44, VXZ and WSO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.44 mean?
On the −1 to +1 scale, -0.44 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: VXZ correlations · WSO correlations
