NKX vs QQQ: Correlation
How closely do Nuveen California AMT-Free Quality Municipal Income Fund (NKX) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.23, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NKX and QQQ?
Across a 3-year window, the weekly returns of NKX and QQQ correlate at 0.23, weak. The link has tightened recently: the 1-year correlation (0.49) runs above the 3-year figure (0.23). Stretching to 5 years gives 0.29, with an annualized covariance of 63.2 %².
Out of 10 assets tracked against NKX, QQQ lands near the bottom at #7. The last year tells two different stories: QQQ led by 16.4 percentage points, +9.9% for NKX against +26.3% for QQQ.
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.
NKX vs QQQ: side by side
| NKX (Nuveen California AMT-Free Quality Municipal Income Fund) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +9.9% | +26.3% |
| 5-year return | -2.1% | +95.4% |
| Volatility (ann.) | 14.1% | 19.6% |
| Beta vs S&P 500 | 0.28 | 1.28 |
| Max drawdown (3Y) | -13.9% | -22.8% |
| Market cap | $0.6B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 7.51% | 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 | NKX | QQQ |
|---|---|---|
| 2022 | -18.4% | -32.6% |
| 2023 | -1.9% | +54.9% |
| 2024 | +16.5% | +25.6% |
| 2025 | +6.0% | +20.8% |
| 2026 | +1.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NKX and QQQ good diversifiers for each other?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between NKX and QQQ?
The NKX/QQQ correlation stands at 0.23 on a 3-year window (1 year: 0.49, 5 years: 0.29), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for NKX?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.23 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nkx-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/nkx-vs-qqq/)
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Related comparisons
Hubs: NKX correlations · QQQ correlations
