MMU vs QQQ: Correlation
Measured on weekly returns over the past three years, Western Asset Managed Municipals Fund, Inc. (MMU) and Invesco QQQ Trust (QQQ) carry a correlation of 0.27, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MMU and QQQ?
Across a 3-year window, the weekly returns of MMU and QQQ correlate at 0.27, weak. Little has changed lately, as the 1-year reading of 0.36 lands near the 3-year figure. Stretching to 5 years gives 0.37, with an annualized covariance of 59.5 %².
QQQ is close to the least connected end of MMU's tracked universe, ranking #8 of 11. Correlation aside, the last 12 months split them widely, with QQQ ahead by 17.1 points (+9.2% versus +26.3%). One caveat on sizing: QQQ is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
MMU vs QQQ: side by side
| MMU (Western Asset Managed Municipals Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +9.2% | +26.3% |
| 5-year return | -2.0% | +95.4% |
| Volatility (ann.) | 11.3% | 19.6% |
| Beta vs S&P 500 | 0.27 | 1.28 |
| Max drawdown (3Y) | -9.5% | -22.8% |
| Market cap | $0.6B | – |
| P/E (trailing) | 10.7 | – |
| Dividend yield | 6.45% | 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 | MMU | QQQ |
|---|---|---|
| 2022 | -19.6% | -32.6% |
| 2023 | +5.7% | +54.9% |
| 2024 | +6.6% | +25.6% |
| 2025 | +9.3% | +20.8% |
| 2026 | +1.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MMU and QQQ good diversifiers for each other?
Reasonably. At 0.27, MMU and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MMU and QQQ?
As of 2026-08-27, the correlation of weekly returns between MMU and QQQ is 0.27 over 3 years, 0.36 over 1 year and 0.37 over 5 years.
Is QQQ a good diversifier for MMU?
Reasonably. At 0.27, MMU and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.27 mean?
A reading of 0.27 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/mmu-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mmu-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MMU correlations · QQQ correlations
