NZF vs VKQ: Correlation
Measured on weekly returns over the past three years, Nuveen Municipal Credit Income Fund (NZF) and Invesco Municipal Trust (VKQ) carry a correlation of 0.84, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NZF and VKQ?
Across a 3-year window, the weekly returns of NZF and VKQ correlate at 0.84, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.78) sits close to the 3-year figure. Stretching to 5 years gives 0.85, with an annualized covariance of 113.7 %².
Within NZF's tracked universe of 25 assets, VKQ comes in at #5 by 3-year correlation. On 12-month performance VKQ holds a 5.1-point edge, +10.8% against +15.9%.
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 VKQ: side by side
| NZF (Nuveen Municipal Credit Income Fund) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +10.8% | +15.9% |
| 5-year return | -4.1% | -4.8% |
| Volatility (ann.) | 11.6% | 11.7% |
| Beta vs S&P 500 | 0.30 | 0.30 |
| Max drawdown (3Y) | -12.4% | -11.7% |
| Market cap | $2.4B | – |
| P/E (trailing) | 13.5 | 32.7 |
| Dividend yield | 7.80% | 7.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NZF | VKQ |
|---|---|---|
| 2022 | -25.5% | -22.3% |
| 2023 | +2.5% | +0.9% |
| 2024 | +10.1% | +9.7% |
| 2025 | +11.8% | +6.5% |
| 2026 | +2.4% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NZF and VKQ good diversifiers for each other?
No. With a correlation of 0.84, NZF and VKQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NZF and VKQ?
The NZF/VKQ correlation stands at 0.84 on a 3-year window (1 year: 0.78, 5 years: 0.85), computed from weekly returns as of 2026-08-27.
Is VKQ a good diversifier for NZF?
No. With a correlation of 0.84, NZF and VKQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.84 mean?
On the −1 to +1 scale, 0.84 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/nzf-vs-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nzf-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NZF correlations · VKQ correlations
