DOW vs QQQ: Correlation
How closely do Dow Inc. (DOW) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.16, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOW and QQQ?
Across a 3-year window, the weekly returns of DOW and QQQ correlate at 0.16, weak. The link has loosened recently: the 1-year correlation (-0.15) runs below the 3-year figure (0.16). Stretching to 5 years gives 0.25, with an annualized covariance of 110.9 %².
Within DOW's tracked universe of 32 assets, QQQ comes in at #22 by 3-year correlation. Neither side won the trailing year by much: +29.0% against +26.3%. The relationship is regime-dependent: the rolling one-year correlation swung between -0.14 and 0.54 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: DOW 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.
DOW vs QQQ: side by side
| DOW (Dow Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +29.0% | +26.3% |
| 5-year return | -38.4% | +95.4% |
| Volatility (ann.) | 35.2% | 19.6% |
| Beta vs S&P 500 | 0.62 | 1.28 |
| Max drawdown (3Y) | -62.2% | -22.8% |
| Market cap | $21.9B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.62% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Materials | 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 | DOW | QQQ |
|---|---|---|
| 2022 | -6.6% | -32.6% |
| 2023 | +14.7% | +54.9% |
| 2024 | -22.8% | +25.6% |
| 2025 | -37.4% | +20.8% |
| 2026 | +32.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOW and QQQ good diversifiers for each other?
Yes. With a correlation of 0.16, DOW and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between DOW and QQQ?
Using weekly returns as of 2026-08-27: 0.16 over 3 years, with -0.15 over the last year and 0.25 over 5 years.
Is QQQ a good diversifier for DOW?
Yes. With a correlation of 0.16, DOW and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.16 mean?
On the −1 to +1 scale, 0.16 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dow-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dow-vs-qqq/)
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Related comparisons
Hubs: DOW correlations · QQQ correlations
