EFC vs QQQ: Correlation
Ellington Financial Inc. (EFC) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.32.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFC and QQQ?
Across a 3-year window, the weekly returns of EFC and QQQ correlate at 0.32, moderate. Recent behaviour matches the longer record: 0.32 over 1 year against 0.32 over 3. Stretching to 5 years gives 0.45, with an annualized covariance of 115.9 %².
QQQ is close to the least connected end of EFC's tracked universe, ranking #9 of 13. The last year tells two different stories: QQQ led by 15.6 percentage points, +10.7% for EFC 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.
EFC vs QQQ: side by side
| EFC (Ellington Financial Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +10.7% | +26.3% |
| 5-year return | +35.9% | +95.4% |
| Volatility (ann.) | 18.8% | 19.6% |
| Beta vs S&P 500 | 0.54 | 1.28 |
| Max drawdown (3Y) | -18.9% | -22.8% |
| Market cap | $1.8B | – |
| P/E (trailing) | 8.4 | – |
| Dividend yield | 11.59% | 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 | EFC | QQQ |
|---|---|---|
| 2022 | -18.3% | -32.6% |
| 2023 | +18.2% | +54.9% |
| 2024 | +8.7% | +25.6% |
| 2025 | +26.1% | +20.8% |
| 2026 | +7.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFC and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.32 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between EFC and QQQ?
The EFC/QQQ correlation stands at 0.32 on a 3-year window (1 year: 0.32, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for EFC?
Yes, to a useful degree: a correlation of 0.32 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.32 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: EFC correlations · QQQ correlations
