IQI vs NAC: Correlation
How closely do Invesco Quality Municipal Income Trust (IQI) and Nuveen California Quality Municipal Income Fund (NAC) trade together? Their weekly returns over three years give a correlation of 0.82, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IQI and NAC?
Across a 3-year window, the weekly returns of IQI and NAC correlate at 0.82, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.66) than the 3-year average (0.82). Stretching to 5 years gives 0.81, with an annualized covariance of 101.0 %².
Among the 27 assets we track against IQI, NAC ranks #11 by 3-year correlation. Their 12-month results are close: +16.7% for IQI against +12.8% for NAC.
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.
IQI vs NAC: side by side
| IQI (Invesco Quality Municipal Income Trust) | NAC (Nuveen California Quality Municipal Income Fund) | |
|---|---|---|
| 1-year return | +16.7% | +12.8% |
| 5-year return | +1.1% | -0.8% |
| Volatility (ann.) | 11.8% | 10.5% |
| Beta vs S&P 500 | 0.31 | 0.21 |
| Max drawdown (3Y) | -11.2% | -9.6% |
| Market cap | – | – |
| P/E (trailing) | 29.9 | – |
| Dividend yield | 7.50% | 7.63% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IQI | NAC |
|---|---|---|
| 2022 | -26.9% | -25.6% |
| 2023 | +5.9% | +4.5% |
| 2024 | +10.5% | +8.7% |
| 2025 | +9.2% | +13.1% |
| 2026 | +7.1% | +4.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IQI and NAC good diversifiers for each other?
No. With a correlation of 0.82, IQI and NAC move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IQI and NAC?
Using weekly returns as of 2026-08-27: 0.82 over 3 years, with 0.66 over the last year and 0.81 over 5 years.
Is NAC a good diversifier for IQI?
No. With a correlation of 0.82, IQI and NAC move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.82 mean?
A reading of 0.82 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iqi-vs-nac.json
Markdown for the live badge, attribution link included:
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Related comparisons
Hubs: IQI correlations · NAC correlations
