CAKE vs QQQ: Correlation
Measured on weekly returns over the past three years, The Cheesecake Factory Incorporated (CAKE) and Invesco QQQ Trust (QQQ) carry a correlation of 0.29, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and QQQ?
On 3 years of weekly data the CAKE/QQQ correlation comes out at 0.29, weak. Recent behaviour matches the longer record: 0.27 over 1 year against 0.29 over 3. The 5-year figure is 0.42, and annualized covariance runs at 199.2 %².
Among the 23 assets we track against CAKE, QQQ sits near the bottom by co-movement, at rank #20. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 54.8 percentage points (+81.1% for CAKE against +26.3% for QQQ). One caveat on sizing: CAKE is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
CAKE vs QQQ: side by side
| CAKE (The Cheesecake Factory Incorporated) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +81.1% | +26.3% |
| 5-year return | +170.4% | +95.4% |
| Volatility (ann.) | 34.8% | 19.6% |
| Beta vs S&P 500 | 0.93 | 1.28 |
| Max drawdown (3Y) | -36.4% | -22.8% |
| Market cap | $5.5B | – |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 0.99% | 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 | CAKE | QQQ |
|---|---|---|
| 2022 | -17.0% | -32.6% |
| 2023 | +14.0% | +54.9% |
| 2024 | +39.3% | +25.6% |
| 2025 | +8.6% | +20.8% |
| 2026 | +120.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between CAKE and QQQ?
As of 2026-08-27, the correlation of weekly returns between CAKE and QQQ is 0.29 over 3 years, 0.27 over 1 year and 0.42 over 5 years.
Is QQQ a good diversifier for CAKE?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.29 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: CAKE correlations · QQQ correlations
