ARCO vs QQQ: Correlation
Measured on weekly returns over the past three years, Arcos Dorados Holdings Inc. Class A Shares (ARCO) and Invesco QQQ Trust (QQQ) carry a correlation of 0.24, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCO and QQQ?
Over the past 3 years, ARCO and QQQ moved with a correlation of 0.24, which is weak. Recent behaviour matches the longer record: 0.33 over 1 year against 0.24 over 3. Over 5 years the correlation is 0.23, and the annualized covariance of weekly returns is 145.3 %².
Among the 10 assets we track against ARCO, QQQ sits near the bottom by co-movement, at rank #7. The trailing year gives QQQ the advantage: +18.0% versus +26.3%, a 8.3-point spread. Note the risk asymmetry: ARCO runs 1.6 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.
ARCO vs QQQ: side by side
| ARCO (Arcos Dorados Holdings Inc. Class A Shares) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +18.0% | +26.3% |
| 5-year return | +59.4% | +95.4% |
| Volatility (ann.) | 30.6% | 19.6% |
| Beta vs S&P 500 | 0.59 | 1.28 |
| Max drawdown (3Y) | -47.9% | -22.8% |
| Market cap | $1.7B | – |
| P/E (trailing) | 6.5 | – |
| Dividend yield | 3.50% | 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 | ARCO | QQQ |
|---|---|---|
| 2022 | +46.3% | -32.6% |
| 2023 | +54.9% | +54.9% |
| 2024 | -41.0% | +25.6% |
| 2025 | +4.1% | +20.8% |
| 2026 | +10.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCO and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ARCO and QQQ?
The ARCO/QQQ correlation stands at 0.24 on a 3-year window (1 year: 0.33, 5 years: 0.23), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for ARCO?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.24 mean?
A reading of 0.24 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: ARCO correlations · QQQ correlations
