MCO vs QUAL: Correlation
Moody's Corporation (MCO) and iShares MSCI USA Quality Factor ETF (QUAL) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCO and QUAL?
Over the past 3 years, MCO and QUAL moved with a correlation of 0.62, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.34 versus 0.62 over 3 years. Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 224.2 %².
By 3-year correlation, QUAL places #7 of the 53 assets tracked against MCO. Their recent paths diverged sharply: over the last 12 months QUAL outperformed by 19.0 percentage points (+0.7% for MCO against +19.7% for QUAL). Across three years, the rolling one-year figure varied moderately, from 0.37 to 0.86. Risk is not evenly split, since MCO carries 1.8 times the volatility of the other side.
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 QUAL: side by side
| MCO (Moody's Corporation) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +0.7% | +19.7% |
| 5-year return | +39.4% | +68.0% |
| Volatility (ann.) | 25.8% | 14.0% |
| Beta vs S&P 500 | 1.08 | 0.93 |
| Max drawdown (3Y) | -24.7% | -18.0% |
| Market cap | $88.2B | – |
| P/E (trailing) | 32.7 | – |
| Dividend yield | 0.77% | 0.86% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $46.5B |
| Sector / category | Financials | ETF · US Style |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | MCO | QUAL |
|---|---|---|
| 2022 | -28.0% | -20.5% |
| 2023 | +41.5% | +30.9% |
| 2024 | +22.2% | +22.3% |
| 2025 | +8.7% | +12.7% |
| 2026 | +0.3% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that QUAL holds MCO at a 0.32% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MCO and QUAL good diversifiers for each other?
Only partially. A correlation of 0.62 means MCO and QUAL 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 QUAL?
The MCO/QUAL correlation stands at 0.62 on a 3-year window (1 year: 0.34, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is QUAL a good diversifier for MCO?
Only partially. A correlation of 0.62 means MCO and QUAL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
A reading of 0.62 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/mco-vs-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mco-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MCO correlations · QUAL correlations
