ESNT vs QQQ: Correlation
Essent Group Ltd. (ESNT) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESNT and QQQ?
On 3 years of weekly data the ESNT/QQQ correlation comes out at 0.25, weak. The past 12 months show a weaker link (0.07) than the 3-year average (0.25). The 5-year figure is 0.39, and annualized covariance runs at 103.8 %².
Among the 13 assets we track against ESNT, QQQ sits near the bottom by co-movement, at rank #10. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 16.1 percentage points (+10.2% for ESNT 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.
ESNT vs QQQ: side by side
| ESNT (Essent Group Ltd.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +10.2% | +26.3% |
| 5-year return | +62.5% | +95.4% |
| Volatility (ann.) | 21.4% | 19.6% |
| Beta vs S&P 500 | 0.57 | 1.28 |
| Max drawdown (3Y) | -18.4% | -22.8% |
| Market cap | $6.2B | – |
| P/E (trailing) | 9.7 | – |
| Dividend yield | 1.90% | 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 | ESNT | QQQ |
|---|---|---|
| 2022 | -12.8% | -32.6% |
| 2023 | +38.6% | +54.9% |
| 2024 | +5.2% | +25.6% |
| 2025 | +20.7% | +20.8% |
| 2026 | +7.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESNT and QQQ good diversifiers for each other?
Reasonably. At 0.25, ESNT and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ESNT and QQQ?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with 0.07 over the last year and 0.39 over 5 years.
Is QQQ a good diversifier for ESNT?
Reasonably. At 0.25, ESNT and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.25 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
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Related comparisons
Hubs: ESNT correlations · QQQ correlations
