MUC vs QQQ: Correlation
Measured on weekly returns over the past three years, Blackrock MuniHoldings California Quality Fund, Inc. (MUC) 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 MUC and QQQ?
On 3 years of weekly data the MUC/QQQ correlation comes out at 0.27, weak. The past 12 months show a tighter link (0.54) than the 3-year average (0.27). The 5-year figure is 0.37, and annualized covariance runs at 58.3 %².
Among the 15 assets we track against MUC, QQQ sits near the bottom by co-movement, at rank #12. Correlation aside, the last 12 months split them widely, with QQQ ahead by 15.4 points (+10.9% versus +26.3%). Note the risk asymmetry: QQQ runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
MUC vs QQQ: side by side
| MUC (Blackrock MuniHoldings California Quality Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +10.9% | +26.3% |
| 5-year return | -13.2% | +95.4% |
| Volatility (ann.) | 10.9% | 19.6% |
| Beta vs S&P 500 | 0.25 | 1.28 |
| Max drawdown (3Y) | -10.7% | -22.8% |
| Market cap | $1.0B | – |
| P/E (trailing) | 46.3 | – |
| Dividend yield | 6.04% | 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 | MUC | QQQ |
|---|---|---|
| 2022 | -26.8% | -32.6% |
| 2023 | +7.9% | +54.9% |
| 2024 | +0.8% | +25.6% |
| 2025 | +6.0% | +20.8% |
| 2026 | +4.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MUC and QQQ good diversifiers for each other?
Reasonably. At 0.27, MUC and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MUC and QQQ?
As of 2026-08-27, the correlation of weekly returns between MUC and QQQ is 0.27 over 3 years, 0.54 over 1 year and 0.37 over 5 years.
Is QQQ a good diversifier for MUC?
Reasonably. At 0.27, MUC and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.27 mean?
On the −1 to +1 scale, 0.27 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/muc-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: MUC correlations · QQQ correlations
