EML vs QQQ: Correlation
How closely do Eastern Company (The) (EML) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.31, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EML and QQQ?
Across a 3-year window, the weekly returns of EML and QQQ correlate at 0.31, moderate. The past 12 months show a weaker link (0.15) than the 3-year average (0.31). Stretching to 5 years gives 0.29, with an annualized covariance of 239.9 %².
QQQ is close to the least connected end of EML's tracked universe, ranking #7 of 10. On 12-month performance QQQ holds a 14.4-point edge, +11.9% against +26.3%. Note the risk asymmetry: EML runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
EML vs QQQ: side by side
| EML (Eastern Company (The)) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +11.9% | +26.3% |
| 5-year return | +6.9% | +95.4% |
| Volatility (ann.) | 39.5% | 19.6% |
| Beta vs S&P 500 | 0.99 | 1.28 |
| Max drawdown (3Y) | -47.0% | -22.8% |
| Market cap | $0.2B | – |
| P/E (trailing) | 19.8 | – |
| Dividend yield | 1.69% | 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 | EML | QQQ |
|---|---|---|
| 2022 | -21.5% | -32.6% |
| 2023 | +16.8% | +54.9% |
| 2024 | +22.6% | +25.6% |
| 2025 | -24.4% | +20.8% |
| 2026 | +35.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EML and QQQ good diversifiers for each other?
Reasonably. At 0.31, EML and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between EML and QQQ?
The EML/QQQ correlation stands at 0.31 on a 3-year window (1 year: 0.15, 5 years: 0.29), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for EML?
Reasonably. At 0.31, EML and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.31 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eml-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/eml-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EML correlations · QQQ correlations
