FRME vs QQQ: Correlation
First Merchants Corporation (FRME) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRME and QQQ?
On 3 years of weekly data the FRME/QQQ correlation comes out at 0.22, weak. Lately the two have drifted apart, with the 1-year correlation at -0.05 versus 0.22 over 3 years. The 5-year figure is 0.24, and annualized covariance runs at 128.4 %².
Among the 26 assets we track against FRME, QQQ sits near the bottom by co-movement, at rank #23. The last year tells two different stories: QQQ led by 22.8 percentage points, +3.5% for FRME against +26.3% for QQQ. Note the risk asymmetry: FRME runs 1.5 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.
FRME vs QQQ: side by side
| FRME (First Merchants Corporation) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +3.5% | +26.3% |
| 5-year return | +22.0% | +95.4% |
| Volatility (ann.) | 29.8% | 19.6% |
| Beta vs S&P 500 | 0.78 | 1.28 |
| Max drawdown (3Y) | -23.9% | -22.8% |
| Market cap | $2.6B | – |
| P/E (trailing) | 13.4 | – |
| Dividend yield | 3.48% | 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 | FRME | QQQ |
|---|---|---|
| 2022 | +1.1% | -32.6% |
| 2023 | -5.8% | +54.9% |
| 2024 | +11.8% | +25.6% |
| 2025 | -2.5% | +20.8% |
| 2026 | +13.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FRME and QQQ good diversifiers for each other?
A fair diversifier. At 0.22, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between FRME and QQQ?
The FRME/QQQ correlation stands at 0.22 on a 3-year window (1 year: -0.05, 5 years: 0.24), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for FRME?
A fair diversifier. At 0.22, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.22 mean?
A reading of 0.22 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/frme-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/frme-vs-qqq/)
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Related comparisons
Hubs: FRME correlations · QQQ correlations
