DSM vs QQQ: Correlation
Measured on weekly returns over the past three years, BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and Invesco QQQ Trust (QQQ) carry a correlation of 0.28, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DSM and QQQ?
On 3 years of weekly data the DSM/QQQ correlation comes out at 0.28, weak. Lately the two have moved closer together, with the 1-year correlation at 0.43 versus 0.28 over 3 years. The 5-year figure is 0.40, and annualized covariance runs at 67.4 %².
Among the 18 assets we track against DSM, QQQ sits near the bottom by co-movement, at rank #15. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 17.7 percentage points (+8.6% for DSM against +26.3% for QQQ). One caveat on sizing: QQQ is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
DSM vs QQQ: side by side
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +8.6% | +26.3% |
| 5-year return | -13.5% | +95.4% |
| Volatility (ann.) | 12.4% | 19.6% |
| Beta vs S&P 500 | 0.29 | 1.28 |
| Max drawdown (3Y) | -13.4% | -22.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 9.2 | – |
| Dividend yield | 4.94% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | DSM | QQQ |
|---|---|---|
| 2022 | -27.0% | -32.6% |
| 2023 | +3.2% | +54.9% |
| 2024 | +5.5% | +25.6% |
| 2025 | +10.9% | +20.8% |
| 2026 | -2.4% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DSM and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.28 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between DSM and QQQ?
Using weekly returns as of 2026-08-27: 0.28 over 3 years, with 0.43 over the last year and 0.40 over 5 years.
Is QQQ a good diversifier for DSM?
Yes, to a useful degree: a correlation of 0.28 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.28 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/dsm-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dsm-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DSM correlations · QQQ correlations
