NZF vs VBF: Correlation
Measured on weekly returns over the past three years, Nuveen Municipal Credit Income Fund (NZF) and Invesco Bond Fund (VBF) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NZF and VBF?
Over the past 3 years, NZF and VBF moved with a correlation of 0.63, which is strong. The past 12 months show a weaker link (0.46) than the 3-year average (0.63). Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 67.9 %².
Among the 25 assets we track against NZF, VBF ranks #18 by 3-year correlation. Over the last 12 months NZF came out ahead by 10.1 percentage points (+10.8% against +0.7%).
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.
NZF vs VBF: side by side
| NZF (Nuveen Municipal Credit Income Fund) | VBF (Invesco Bond Fund) | |
|---|---|---|
| 1-year return | +10.8% | +0.7% |
| 5-year return | -4.1% | -4.4% |
| Volatility (ann.) | 11.6% | 9.2% |
| Beta vs S&P 500 | 0.30 | 0.19 |
| Max drawdown (3Y) | -12.4% | -11.5% |
| Market cap | $2.4B | $0.2B |
| P/E (trailing) | 13.5 | 14.4 |
| Dividend yield | 7.80% | 5.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NZF | VBF |
|---|---|---|
| 2022 | -25.5% | -17.8% |
| 2023 | +2.5% | +2.3% |
| 2024 | +10.1% | +7.0% |
| 2025 | +11.8% | +5.5% |
| 2026 | +2.4% | -1.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NZF and VBF good diversifiers for each other?
Only partially. A correlation of 0.63 means NZF and VBF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NZF and VBF?
The NZF/VBF correlation stands at 0.63 on a 3-year window (1 year: 0.46, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is VBF a good diversifier for NZF?
Only partially. A correlation of 0.63 means NZF and VBF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 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/nzf-vs-vbf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nzf-vs-vbf/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NZF correlations · VBF correlations
