EL vs QQQ: Correlation
How closely do Estée Lauder Companies (The) (EL) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.37, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EL and QQQ?
Over the past 3 years, EL and QQQ moved with a correlation of 0.37, which is moderate. The relationship has been stable: the 1-year correlation (0.43) sits close to the 3-year figure. Over 5 years the correlation is 0.44, and the annualized covariance of weekly returns is 335.9 %².
Among the 35 assets we track against EL, QQQ ranks #19 by 3-year correlation. The trailing year gives QQQ the advantage: +16.4% versus +26.3%, a 9.9-point spread. Across three years, the rolling one-year figure varied moderately, from 0.09 to 0.57. One caveat on sizing: EL is 2.4 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.
EL vs QQQ: side by side
| EL (Estée Lauder Companies (The)) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +16.4% | +26.3% |
| 5-year return | -66.7% | +95.4% |
| Volatility (ann.) | 47.0% | 19.6% |
| Beta vs S&P 500 | 1.28 | 1.28 |
| Max drawdown (3Y) | -68.4% | -22.8% |
| Market cap | $38.4B | – |
| P/E (trailing) | 208.3 | – |
| Dividend yield | 1.33% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Consumer Staples | 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 | EL | QQQ |
|---|---|---|
| 2022 | -32.3% | -32.6% |
| 2023 | -40.1% | +54.9% |
| 2024 | -47.6% | +25.6% |
| 2025 | +42.1% | +20.8% |
| 2026 | +2.1% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EL and QQQ good diversifiers for each other?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EL and QQQ?
As of 2026-08-27, the correlation of weekly returns between EL and QQQ is 0.37 over 3 years, 0.43 over 1 year and 0.44 over 5 years.
Is QQQ a good diversifier for EL?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.37 mean?
On the −1 to +1 scale, 0.37 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: EL correlations · QQQ correlations
