ARDC vs QQQ: Correlation
Measured on weekly returns over the past three years, Ares Dynamic Credit Allocation Fund, Inc. (ARDC) and Invesco QQQ Trust (QQQ) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARDC and QQQ?
Across a 3-year window, the weekly returns of ARDC and QQQ correlate at 0.52, moderate. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. Stretching to 5 years gives 0.51, with an annualized covariance of 125.8 %².
Out of 12 assets tracked against ARDC, QQQ lands near the bottom at #8. The last year tells two different stories: QQQ led by 32.5 percentage points, -6.2% for ARDC against +26.3% for QQQ. Note the risk asymmetry: QQQ 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.
ARDC vs QQQ: side by side
| ARDC (Ares Dynamic Credit Allocation Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -6.2% | +26.3% |
| 5-year return | +23.0% | +95.4% |
| Volatility (ann.) | 12.3% | 19.6% |
| Beta vs S&P 500 | 0.49 | 1.28 |
| Max drawdown (3Y) | -19.8% | -22.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 0.00% | 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 | ARDC | QQQ |
|---|---|---|
| 2022 | -22.2% | -32.6% |
| 2023 | +32.4% | +54.9% |
| 2024 | +21.1% | +25.6% |
| 2025 | -3.1% | +20.8% |
| 2026 | -0.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARDC and QQQ good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARDC and QQQ?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.62 over the last year and 0.51 over 5 years.
Is QQQ a good diversifier for ARDC?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
A reading of 0.52 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ardc-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ardc-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARDC correlations · QQQ correlations
