ARE vs QQQ: Correlation
Measured on weekly returns over the past three years, Alexandria Real Estate Equities (ARE) and Invesco QQQ Trust (QQQ) carry a correlation of 0.23, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARE and QQQ?
Across a 3-year window, the weekly returns of ARE and QQQ correlate at 0.23, weak. The link has loosened recently: the 1-year correlation (0.07) runs below the 3-year figure (0.23). Stretching to 5 years gives 0.35, with an annualized covariance of 169.1 %².
Within ARE's tracked universe of 34 assets, QQQ comes in at #24 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 58.4 points (-32.1% versus +26.3%). Across three years, the rolling one-year figure varied moderately, from 0.10 to 0.50. Risk is not evenly split, since ARE carries 2.0 times the volatility of the other side.
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.
ARE vs QQQ: side by side
| ARE (Alexandria Real Estate Equities) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -32.1% | +26.3% |
| 5-year return | -68.3% | +95.4% |
| Volatility (ann.) | 38.3% | 19.6% |
| Beta vs S&P 500 | 0.91 | 1.28 |
| Max drawdown (3Y) | -65.6% | -22.8% |
| Market cap | $9.0B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.57% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Real Estate | 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 | ARE | QQQ |
|---|---|---|
| 2022 | -32.6% | -32.6% |
| 2023 | -9.1% | +54.9% |
| 2024 | -19.4% | +25.6% |
| 2025 | -46.6% | +20.8% |
| 2026 | +9.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARE and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ARE and QQQ?
As of 2026-08-27, the correlation of weekly returns between ARE and QQQ is 0.23 over 3 years, 0.07 over 1 year and 0.35 over 5 years.
Is QQQ a good diversifier for ARE?
Yes, to a useful degree: a correlation of 0.23 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.23 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.
Use this data
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Related comparisons
Hubs: ARE correlations · QQQ correlations
