CAT vs QQQ: Correlation
Measured on weekly returns over the past three years, Caterpillar Inc. (CAT) and Invesco QQQ Trust (QQQ) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and QQQ?
Across a 3-year window, the weekly returns of CAT and QQQ correlate at 0.44, moderate. The link has loosened recently: the 1-year correlation (0.31) runs below the 3-year figure (0.44). Stretching to 5 years gives 0.42, with an annualized covariance of 250.8 %².
By 3-year correlation, QQQ places #24 of the 36 assets tracked against CAT. The last year tells two different stories: CAT led by 64.2 percentage points, +90.5% for CAT against +26.3% for QQQ. On a rolling one-year basis the correlation drifted between 0.21 and 0.67, a moderate band.
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.
CAT vs QQQ: side by side
| CAT (Caterpillar Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +90.5% | +26.3% |
| 5-year return | +321.1% | +95.4% |
| Volatility (ann.) | 29.4% | 19.6% |
| Beta vs S&P 500 | 1.03 | 1.28 |
| Max drawdown (3Y) | -34.0% | -22.8% |
| Market cap | $375.6B | – |
| P/E (trailing) | 35.3 | – |
| Dividend yield | 0.75% | 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 | CAT | QQQ |
|---|---|---|
| 2022 | +18.6% | -32.6% |
| 2023 | +25.9% | +54.9% |
| 2024 | +24.7% | +25.6% |
| 2025 | +60.3% | +20.8% |
| 2026 | +43.5% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between CAT and QQQ?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.31 over the last year and 0.42 over 5 years.
Is QQQ a good diversifier for CAT?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
A reading of 0.44 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: CAT correlations · QQQ correlations
