AA vs QQQ: Correlation
How closely do Alcoa Corporation (AA) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AA and QQQ?
On 3 years of weekly data the AA/QQQ correlation comes out at 0.43, moderate. The link has loosened recently: the 1-year correlation (0.30) runs below the 3-year figure (0.43). The 5-year figure is 0.42, and annualized covariance runs at 429.9 %².
QQQ is close to the least connected end of AA's tracked universe, ranking #8 of 12. The last year tells two different stories: AA led by 35.9 percentage points, +62.2% for AA against +26.3% for QQQ. Note the risk asymmetry: AA runs 2.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
AA vs QQQ: side by side
| AA (Alcoa Corporation) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +62.2% | +26.3% |
| 5-year return | +22.3% | +95.4% |
| Volatility (ann.) | 50.8% | 19.6% |
| Beta vs S&P 500 | 1.71 | 1.28 |
| Max drawdown (3Y) | -52.3% | -22.8% |
| Market cap | $13.5B | – |
| P/E (trailing) | 10.3 | – |
| Dividend yield | 0.80% | 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 | AA | QQQ |
|---|---|---|
| 2022 | -23.1% | -32.6% |
| 2023 | -24.3% | +54.9% |
| 2024 | +12.4% | +25.6% |
| 2025 | +42.5% | +20.8% |
| 2026 | -3.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AA and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between AA and QQQ?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.30 over the last year and 0.42 over 5 years.
Is QQQ a good diversifier for AA?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.43 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.
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Related comparisons
Hubs: AA correlations · QQQ correlations
