FHI vs QQQ: Correlation
Measured on weekly returns over the past three years, Federated Hermes, Inc. (FHI) and Invesco QQQ Trust (QQQ) carry a correlation of 0.36, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FHI and QQQ?
Across a 3-year window, the weekly returns of FHI and QQQ correlate at 0.36, moderate. Little has changed lately, as the 1-year reading of 0.28 lands near the 3-year figure. Stretching to 5 years gives 0.40, with an annualized covariance of 133.6 %².
Out of 11 assets tracked against FHI, QQQ lands near the bottom at #7. Neither side won the trailing year by much: +23.1% against +26.3%.
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.
FHI vs QQQ: side by side
| FHI (Federated Hermes, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +23.1% | +26.3% |
| 5-year return | +131.6% | +95.4% |
| Volatility (ann.) | 19.0% | 19.6% |
| Beta vs S&P 500 | 0.54 | 1.28 |
| Max drawdown (3Y) | -16.6% | -22.8% |
| Market cap | $4.8B | – |
| P/E (trailing) | 12.1 | – |
| Dividend yield | 2.15% | 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 | FHI | QQQ |
|---|---|---|
| 2022 | -0.2% | -32.6% |
| 2023 | -3.8% | +54.9% |
| 2024 | +29.6% | +25.6% |
| 2025 | +30.5% | +20.8% |
| 2026 | +27.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FHI and QQQ good diversifiers for each other?
Reasonably. At 0.36, FHI and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between FHI and QQQ?
Using weekly returns as of 2026-08-27: 0.36 over 3 years, with 0.28 over the last year and 0.40 over 5 years.
Is QQQ a good diversifier for FHI?
Reasonably. At 0.36, FHI and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.36 mean?
On the −1 to +1 scale, 0.36 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: FHI correlations · QQQ correlations
