MHF vs QQQ: Correlation
How closely do Western Asset Municipal High Income Fund, Inc. (MHF) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.31, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MHF and QQQ?
Across a 3-year window, the weekly returns of MHF and QQQ correlate at 0.31, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.47 versus 0.31 over 3 years. Stretching to 5 years gives 0.34, with an annualized covariance of 73.6 %².
QQQ is close to the least connected end of MHF's tracked universe, ranking #7 of 10. Correlation aside, the last 12 months split them widely, with QQQ ahead by 20.7 points (+5.6% versus +26.3%). Risk is not evenly split, since QQQ carries 1.6 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.
MHF vs QQQ: side by side
| MHF (Western Asset Municipal High Income Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +5.6% | +26.3% |
| 5-year return | +6.2% | +95.4% |
| Volatility (ann.) | 12.2% | 19.6% |
| Beta vs S&P 500 | 0.32 | 1.28 |
| Max drawdown (3Y) | -13.3% | -22.8% |
| Market cap | $0.2B | – |
| P/E (trailing) | 18.0 | – |
| Dividend yield | 5.93% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | MHF | QQQ |
|---|---|---|
| 2022 | -17.6% | -32.6% |
| 2023 | +4.6% | +54.9% |
| 2024 | +12.0% | +25.6% |
| 2025 | +7.2% | +20.8% |
| 2026 | +3.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MHF and QQQ good diversifiers for each other?
Reasonably. At 0.31, MHF and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MHF and QQQ?
Using weekly returns as of 2026-08-27: 0.31 over 3 years, with 0.47 over the last year and 0.34 over 5 years.
Is QQQ a good diversifier for MHF?
Reasonably. At 0.31, MHF and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.31 mean?
On the −1 to +1 scale, 0.31 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/mhf-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mhf-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MHF correlations · QQQ correlations
