EDD vs QQQ: Correlation
Measured on weekly returns over the past three years, Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD) and Invesco QQQ Trust (QQQ) carry a correlation of 0.39, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EDD and QQQ?
Over the past 3 years, EDD and QQQ moved with a correlation of 0.39, which is moderate. The relationship has been stable: the 1-year correlation (0.30) sits close to the 3-year figure. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 126.3 %².
Out of 10 assets tracked against EDD, QQQ lands near the bottom at #7. Their 12-month results are close: +25.2% for EDD against +26.3% for QQQ.
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.
EDD vs QQQ: side by side
| EDD (Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +25.2% | +26.3% |
| 5-year return | +51.4% | +95.4% |
| Volatility (ann.) | 16.4% | 19.6% |
| Beta vs S&P 500 | 0.52 | 1.28 |
| Max drawdown (3Y) | -17.7% | -22.8% |
| Market cap | – | – |
| P/E (trailing) | 4.9 | – |
| 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 | EDD | QQQ |
|---|---|---|
| 2022 | -14.1% | -32.6% |
| 2023 | +14.1% | +54.9% |
| 2024 | +8.6% | +25.6% |
| 2025 | +32.5% | +20.8% |
| 2026 | +16.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EDD and QQQ good diversifiers for each other?
Reasonably. At 0.39, EDD and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EDD and QQQ?
As of 2026-08-27, the correlation of weekly returns between EDD and QQQ is 0.39 over 3 years, 0.30 over 1 year and 0.43 over 5 years.
Is QQQ a good diversifier for EDD?
Reasonably. At 0.39, EDD and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.39 mean?
On the −1 to +1 scale, 0.39 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
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Related comparisons
Hubs: EDD correlations · QQQ correlations
