VXZ vs XBI: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and SPDR S&P Biotech ETF (XBI) 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 XBI?
On 3 years of weekly data the VXZ/XBI correlation comes out at -0.52, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.44 over 1 year against -0.52 over 3. The 5-year figure is -0.49, and annualized covariance runs at -368.9 %².
By 3-year correlation, XBI places #2602 of the 2840 assets tracked against VXZ. Their recent paths diverged sharply: over the last 12 months XBI outperformed by 103.3 percentage points (-16.1% for VXZ against +87.2% for XBI).
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 XBI: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | -16.1% | +87.2% |
| 5-year return | -53.1% | +28.6% |
| Volatility (ann.) | 25.6% | 27.7% |
| Beta vs S&P 500 | -1.31 | 1.09 |
| Max drawdown (3Y) | -36.4% | -33.0% |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | VXZ | XBI |
|---|---|---|
| 2022 | +0.5% | -25.9% |
| 2023 | -44.0% | +7.6% |
| 2024 | -12.7% | +1.0% |
| 2025 | +5.7% | +35.9% |
| 2026 | -10.5% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XBI good diversifiers for each other?
Yes. With a correlation of -0.52, VXZ and XBI have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and XBI?
Using weekly returns as of 2026-08-27: -0.52 over 3 years, with -0.44 over the last year and -0.49 over 5 years.
Is XBI a good diversifier for VXZ?
Yes. With a correlation of -0.52, VXZ and XBI 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
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Related comparisons
Hubs: VXZ correlations · XBI correlations
