ESI vs QQQ: Correlation
How closely do Element Solutions Inc. (ESI) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESI and QQQ?
On 3 years of weekly data the ESI/QQQ correlation comes out at 0.54, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.44 versus 0.54 over 3 years. The 5-year figure is 0.60, and annualized covariance runs at 346.7 %².
Among the 18 assets we track against ESI, QQQ ranks #10 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ESI ahead by 17.0 points (+43.3% versus +26.3%). Note the risk asymmetry: ESI runs 1.7 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.
ESI vs QQQ: side by side
| ESI (Element Solutions Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +43.3% | +26.3% |
| 5-year return | +67.5% | +95.4% |
| Volatility (ann.) | 32.8% | 19.6% |
| Beta vs S&P 500 | 1.26 | 1.28 |
| Max drawdown (3Y) | -40.0% | -22.8% |
| Market cap | $8.9B | – |
| P/E (trailing) | 49.4 | – |
| Dividend yield | 0.89% | 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 | ESI | QQQ |
|---|---|---|
| 2022 | -23.9% | -32.6% |
| 2023 | +29.3% | +54.9% |
| 2024 | +11.3% | +25.6% |
| 2025 | -0.4% | +20.8% |
| 2026 | +46.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESI and QQQ good diversifiers for each other?
To a limited degree. At 0.54 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ESI and QQQ?
As of 2026-08-27, the correlation of weekly returns between ESI and QQQ is 0.54 over 3 years, 0.44 over 1 year and 0.60 over 5 years.
Is QQQ a good diversifier for ESI?
To a limited degree. At 0.54 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.54 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: ESI correlations · QQQ correlations
