VXZ vs XYL: Correlation
How closely do iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Xylem Inc. (XYL) trade together? Their weekly returns over three years give a correlation of -0.54, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XYL?
Over the past 3 years, VXZ 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 (-0.38) than the 3-year average (-0.54). Over 5 years the correlation is -0.54, and the annualized covariance of weekly returns is -330.7 %².
Among the 2840 assets we track against VXZ, XYL ranks #2650 by 3-year correlation. The trailing year gives VXZ the advantage: -16.1% versus -21.1%, a 5.0-point spread.
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 XYL: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | -16.1% | -21.1% |
| 5-year return | -53.1% | -12.5% |
| Volatility (ann.) | 25.6% | 23.9% |
| Beta vs S&P 500 | -1.31 | 0.96 |
| Max drawdown (3Y) | -36.4% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | – | 1.47% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | VXZ | XYL |
|---|---|---|
| 2022 | +0.5% | -6.6% |
| 2023 | -44.0% | +4.8% |
| 2024 | -12.7% | +2.6% |
| 2025 | +5.7% | +18.8% |
| 2026 | -10.5% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XYL good diversifiers for each other?
Yes. With a correlation of -0.54, VXZ and XYL have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and XYL?
Using weekly returns as of 2026-08-27: -0.54 over 3 years, with -0.38 over the last year and -0.54 over 5 years.
Is XYL a good diversifier for VXZ?
Yes. With a correlation of -0.54, VXZ and XYL have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.54 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-xyl.json
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Related comparisons
Hubs: VXZ correlations · XYL correlations
