ADP vs QQQ: Correlation
How closely do Automatic Data Processing (ADP) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.25, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and QQQ?
On 3 years of weekly data the ADP/QQQ correlation comes out at 0.25, weak. Lately the two have drifted apart, with the 1-year correlation at 0.03 versus 0.25 over 3 years. The 5-year figure is 0.45, and annualized covariance runs at 105.3 %².
Within ADP's tracked universe of 43 assets, QQQ comes in at #33 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 29.8 percentage points (-3.5% for ADP against +26.3% for QQQ). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.04 to 0.60.
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.
ADP vs QQQ: side by side
| ADP (Automatic Data Processing) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -3.5% | +26.3% |
| 5-year return | +52.0% | +95.4% |
| Volatility (ann.) | 21.7% | 19.6% |
| Beta vs S&P 500 | 0.53 | 1.28 |
| Max drawdown (3Y) | -40.8% | -22.8% |
| Market cap | $113.1B | – |
| P/E (trailing) | 26.0 | – |
| Dividend yield | 2.36% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Industrials | 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 | ADP | QQQ |
|---|---|---|
| 2022 | -1.3% | -32.6% |
| 2023 | -0.2% | +54.9% |
| 2024 | +28.4% | +25.6% |
| 2025 | -10.2% | +20.8% |
| 2026 | +12.4% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that QQQ holds ADP at a 0.5% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ADP and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ADP and QQQ?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with 0.03 over the last year and 0.45 over 5 years.
Is QQQ a good diversifier for ADP?
Yes, to a useful degree: a correlation of 0.25 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.25 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: ADP correlations · QQQ correlations
