NEA vs PCQ: Correlation
How closely do Nuveen AMT-Free Quality Municipal Income Fund (NEA) and PIMCO California Municipal Income Fund (PCQ) trade together? Their weekly returns over three years give a correlation of 0.80, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEA and PCQ?
Across a 3-year window, the weekly returns of NEA and PCQ correlate at 0.80, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.78 over 1 year against 0.80 over 3. Stretching to 5 years gives 0.60, with an annualized covariance of 108.7 %².
Among the 36 assets we track against NEA, PCQ ranks #13 by 3-year correlation. Neither side won the trailing year by much: +10.4% against +11.3%.
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.
NEA vs PCQ: side by side
| NEA (Nuveen AMT-Free Quality Municipal Income Fund) | PCQ (PIMCO California Municipal Income Fund) | |
|---|---|---|
| 1-year return | +10.4% | +11.3% |
| 5-year return | -4.4% | -40.9% |
| Volatility (ann.) | 10.9% | 12.5% |
| Beta vs S&P 500 | 0.28 | 0.25 |
| Max drawdown (3Y) | -11.3% | -17.4% |
| Market cap | $3.4B | – |
| P/E (trailing) | 14.5 | 291.0 |
| Dividend yield | 7.70% | 4.94% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NEA | PCQ |
|---|---|---|
| 2022 | -23.3% | -14.7% |
| 2023 | +0.8% | -35.4% |
| 2024 | +9.5% | +1.5% |
| 2025 | +11.3% | +1.5% |
| 2026 | +1.7% | +3.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NEA and PCQ good diversifiers for each other?
No. With a correlation of 0.80, NEA and PCQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NEA and PCQ?
As of 2026-08-27, the correlation of weekly returns between NEA and PCQ is 0.80 over 3 years, 0.78 over 1 year and 0.60 over 5 years.
Is PCQ a good diversifier for NEA?
No. With a correlation of 0.80, NEA and PCQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.80 mean?
A reading of 0.80 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/nea-vs-pcq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nea-vs-pcq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NEA correlations · PCQ correlations
