IIM vs VKQ: Correlation
Measured on weekly returns over the past three years, Invesco Value Municipal Income Trust (IIM) and Invesco Municipal Trust (VKQ) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IIM and VKQ?
On 3 years of weekly data the IIM/VKQ correlation comes out at 0.87, very strong, meaning they move nearly in lockstep. Lately the two have drifted apart, with the 1-year correlation at 0.74 versus 0.87 over 3 years. The 5-year figure is 0.83, and annualized covariance runs at 128.0 %².
Few assets follow IIM as closely as VKQ, which ranks #2 of 17 tracked partners. Neither side won the trailing year by much: +16.5% against +15.9%.
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.
IIM vs VKQ: side by side
| IIM (Invesco Value Municipal Income Trust) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +16.5% | +15.9% |
| 5-year return | +0.6% | -4.8% |
| Volatility (ann.) | 12.7% | 11.7% |
| Beta vs S&P 500 | 0.31 | 0.30 |
| Max drawdown (3Y) | -13.2% | -11.7% |
| Market cap | $0.6B | – |
| P/E (trailing) | 31.6 | 32.7 |
| Dividend yield | 7.32% | 7.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IIM | VKQ |
|---|---|---|
| 2022 | -25.4% | -22.3% |
| 2023 | +2.1% | +0.9% |
| 2024 | +8.1% | +9.7% |
| 2025 | +11.9% | +6.5% |
| 2026 | +7.6% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IIM and VKQ good diversifiers for each other?
No: a correlation of 0.87 means IIM and VKQ tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IIM and VKQ?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.74 over the last year and 0.83 over 5 years.
Is VKQ a good diversifier for IIM?
No: a correlation of 0.87 means IIM and VKQ tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.87 mean?
On the −1 to +1 scale, 0.87 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iim-vs-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iim-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IIM correlations · VKQ correlations
