MCO vs NDAQ: Correlation
How closely do Moody's Corporation (MCO) and Nasdaq, Inc. (NDAQ) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCO and NDAQ?
Across a 3-year window, the weekly returns of MCO and NDAQ correlate at 0.71, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Stretching to 5 years gives 0.71, with an annualized covariance of 427.3 %².
Few assets follow MCO as closely as NDAQ, which ranks #2 of 53 tracked partners. The trailing year gives NDAQ the advantage: +0.7% versus +6.1%, a 5.4-point spread. The rolling one-year correlation moved between 0.46 and 0.87 over the past three years, a moderate range.
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.
MCO vs NDAQ: side by side
| MCO (Moody's Corporation) | NDAQ (Nasdaq, Inc.) | |
|---|---|---|
| 1-year return | +0.7% | +6.1% |
| 5-year return | +39.4% | +64.4% |
| Volatility (ann.) | 25.8% | 23.2% |
| Beta vs S&P 500 | 1.08 | 0.80 |
| Max drawdown (3Y) | -24.7% | -23.4% |
| Market cap | $88.2B | $55.5B |
| P/E (trailing) | 32.7 | 29.0 |
| Dividend yield | 0.77% | 1.13% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | MCO | NDAQ |
|---|---|---|
| 2022 | -28.0% | -11.2% |
| 2023 | +41.5% | -3.7% |
| 2024 | +22.2% | +34.8% |
| 2025 | +8.7% | +27.2% |
| 2026 | +0.3% | +3.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCO and NDAQ good diversifiers for each other?
Only partially. A correlation of 0.71 means MCO and NDAQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MCO and NDAQ?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.70 over the last year and 0.71 over 5 years.
Is NDAQ a good diversifier for MCO?
Only partially. A correlation of 0.71 means MCO and NDAQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 mean?
On the −1 to +1 scale, 0.71 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/mco-vs-ndaq.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mco-vs-ndaq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MCO correlations · NDAQ correlations
