VCV vs VKQ: Correlation
Invesco California Value Municipal Income Trust (VCV) and Invesco Municipal Trust (VKQ) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VCV and VKQ?
Over the past 3 years, VCV and VKQ moved with a correlation of 0.74, which is strong. The link has loosened recently: the 1-year correlation (0.59) runs below the 3-year figure (0.74). Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 117.6 %².
By 3-year correlation, VKQ places #5 of the 10 assets tracked against VCV. Over the last 12 months VKQ came out ahead by 5.4 percentage points (+10.5% 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.
VCV vs VKQ: side by side
| VCV (Invesco California Value Municipal Income Trust) | VKQ (Invesco Municipal Trust) | |
|---|---|---|
| 1-year return | +10.5% | +15.9% |
| 5-year return | -0.3% | -4.8% |
| Volatility (ann.) | 13.6% | 11.7% |
| Beta vs S&P 500 | 0.24 | 0.30 |
| Max drawdown (3Y) | -13.3% | -11.7% |
| Market cap | $0.5B | – |
| P/E (trailing) | 40.4 | 32.7 |
| Dividend yield | 7.38% | 7.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VCV | VKQ |
|---|---|---|
| 2022 | -28.4% | -22.3% |
| 2023 | +7.9% | +0.9% |
| 2024 | +18.7% | +9.7% |
| 2025 | +9.5% | +6.5% |
| 2026 | -0.9% | +6.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VCV and VKQ good diversifiers for each other?
Only partially. A correlation of 0.74 means VCV and VKQ 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 VCV and VKQ?
The VCV/VKQ correlation stands at 0.74 on a 3-year window (1 year: 0.59, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is VKQ a good diversifier for VCV?
Only partially. A correlation of 0.74 means VCV and VKQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.74 mean?
On the −1 to +1 scale, 0.74 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/vcv-vs-vkq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vcv-vs-vkq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VCV correlations · VKQ correlations
