IQI vs VKQ: Correlation
How closely do Invesco Quality Municipal Income Trust (IQI) and Invesco Municipal Trust (VKQ) trade together? Their weekly returns over three years give a correlation of 0.89, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IQI and VKQ?
Across a 3-year window, the weekly returns of IQI and VKQ correlate at 0.89, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.75) runs below the 3-year figure (0.89). Stretching to 5 years gives 0.87, with an annualized covariance of 121.8 %².
In IQI's tracked universe of 27 assets, VKQ sits right near the top at #2. Neither side won the trailing year by much: +16.7% 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.
IQI vs VKQ: side by side
| IQI (Invesco Quality Municipal Income Trust) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +16.7% | +15.9% |
| 5-year return | +1.1% | -4.8% |
| Volatility (ann.) | 11.8% | 11.7% |
| Beta vs S&P 500 | 0.31 | 0.30 |
| Max drawdown (3Y) | -11.2% | -11.7% |
| Market cap | – | – |
| P/E (trailing) | 29.9 | 32.7 |
| Dividend yield | 7.50% | 7.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IQI | VKQ |
|---|---|---|
| 2022 | -26.9% | -22.3% |
| 2023 | +5.9% | +0.9% |
| 2024 | +10.5% | +9.7% |
| 2025 | +9.2% | +6.5% |
| 2026 | +7.1% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IQI and VKQ good diversifiers for each other?
No. With a correlation of 0.89, IQI and VKQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between IQI and VKQ?
As of 2026-08-27, the correlation of weekly returns between IQI and VKQ is 0.89 over 3 years, 0.75 over 1 year and 0.87 over 5 years.
Is VKQ a good diversifier for IQI?
No. With a correlation of 0.89, IQI and VKQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.89 mean?
A reading of 0.89 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-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iqi-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IQI correlations · VKQ correlations
