PCQ vs SPY: Correlation
Measured on weekly returns over the past three years, PIMCO California Municipal Income Fund (PCQ) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.29, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCQ and SPY?
On 3 years of weekly data the PCQ/SPY correlation comes out at 0.29, weak. Lately the two have moved closer together, with the 1-year correlation at 0.54 versus 0.29 over 3 years. The 5-year figure is 0.29, and annualized covariance runs at 51.4 %².
Among the 10 assets we track against PCQ, SPY sits near the bottom by co-movement, at rank #6. On 12-month performance SPY holds a 9.3-point edge, +11.3% 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.
PCQ vs SPY: side by side
| PCQ (PIMCO California Municipal Income Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +11.3% | +20.6% |
| 5-year return | -40.9% | +82.4% |
| Volatility (ann.) | 12.5% | 14.5% |
| Beta vs S&P 500 | 0.25 | 1.00 |
| Max drawdown (3Y) | -17.4% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 291.0 | – |
| Dividend yield | 4.94% | 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 | PCQ | SPY |
|---|---|---|
| 2022 | -14.7% | -18.2% |
| 2023 | -35.4% | +26.2% |
| 2024 | +1.5% | +24.9% |
| 2025 | +1.5% | +17.7% |
| 2026 | +3.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCQ and SPY good diversifiers for each other?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PCQ and SPY?
As of 2026-08-27, the correlation of weekly returns between PCQ and SPY is 0.29 over 3 years, 0.54 over 1 year and 0.29 over 5 years.
Is SPY a good diversifier for PCQ?
A fair diversifier. At 0.29, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.29 mean?
A reading of 0.29 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: PCQ correlations · SPY correlations
