NAZ vs SPY: Correlation
Measured on weekly returns over the past three years, Nuveen Arizona Quality Municipal Income Fund (NAZ) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.31, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NAZ and SPY?
Over the past 3 years, NAZ and SPY moved with a correlation of 0.31, which is moderate. The past 12 months show a weaker link (0.20) than the 3-year average (0.31). Over 5 years the correlation is 0.37, and the annualized covariance of weekly returns is 51.9 %².
Among the 12 assets we track against NAZ, SPY ranks #6 by 3-year correlation. On 12-month performance SPY holds a 9.7-point edge, +10.9% against +20.6%.
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.
NAZ vs SPY: side by side
| NAZ (Nuveen Arizona Quality Municipal Income Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +10.9% | +20.6% |
| 5-year return | +0.2% | +82.4% |
| Volatility (ann.) | 11.7% | 14.5% |
| Beta vs S&P 500 | 0.25 | 1.00 |
| Max drawdown (3Y) | -13.8% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 22.0 | – |
| Dividend yield | 6.73% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | NAZ | SPY |
|---|---|---|
| 2022 | -27.2% | -18.2% |
| 2023 | -0.5% | +26.2% |
| 2024 | +13.0% | +24.9% |
| 2025 | +12.1% | +17.7% |
| 2026 | +8.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NAZ and SPY good diversifiers for each other?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between NAZ and SPY?
The NAZ/SPY correlation stands at 0.31 on a 3-year window (1 year: 0.20, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for NAZ?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
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.
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Related comparisons
Hubs: NAZ correlations · SPY correlations
