FANG vs QQQ: Correlation
Measured on weekly returns over the past three years, Diamondback Energy (FANG) and Invesco QQQ Trust (QQQ) carry a correlation of 0.05, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FANG and QQQ?
Over the past 3 years, FANG and QQQ moved with a correlation of 0.05, which is near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.35 versus 0.05 over 3 years. Over 5 years the correlation is 0.14, and the annualized covariance of weekly returns is 30.8 %².
Within FANG's tracked universe of 41 assets, QQQ comes in at #30 by 3-year correlation. On 12-month performance FANG holds a 13.3-point edge, +39.6% against +26.3%. This link changes with the market regime, having swung between -0.36 and 0.37 on a rolling one-year basis. Note the risk asymmetry: FANG 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.
FANG vs QQQ: side by side
| FANG (Diamondback Energy) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +39.6% | +26.3% |
| 5-year return | +224.9% | +95.4% |
| Volatility (ann.) | 34.1% | 19.6% |
| Beta vs S&P 500 | 0.32 | 1.28 |
| Max drawdown (3Y) | -42.1% | -22.8% |
| Market cap | $56.1B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 2.13% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Energy | 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 | FANG | QQQ |
|---|---|---|
| 2022 | +35.3% | -32.6% |
| 2023 | +19.7% | +54.9% |
| 2024 | +10.3% | +25.6% |
| 2025 | -5.6% | +20.8% |
| 2026 | +35.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.25% of QQQ is FANG itself, so the fund partly moves with the stock by construction.
Are FANG and QQQ good diversifiers for each other?
Yes: at 0.05, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FANG and QQQ?
The FANG/QQQ correlation stands at 0.05 on a 3-year window (1 year: -0.35, 5 years: 0.14), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for FANG?
Yes: at 0.05, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.05 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: FANG correlations · QQQ correlations
