FSS vs QQQ: Correlation
How closely do Federal Signal Corporation (FSS) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FSS and QQQ?
On 3 years of weekly data the FSS/QQQ correlation comes out at 0.40, moderate. The link has loosened recently: the 1-year correlation (0.13) runs below the 3-year figure (0.40). The 5-year figure is 0.45, and annualized covariance runs at 244.6 %².
Within FSS's tracked universe of 15 assets, QQQ comes in at #10 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 31.6 points (-5.3% versus +26.3%). One caveat on sizing: FSS is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
FSS vs QQQ: side by side
| FSS (Federal Signal Corporation) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -5.3% | +26.3% |
| 5-year return | +203.9% | +95.4% |
| Volatility (ann.) | 31.2% | 19.6% |
| Beta vs S&P 500 | 1.02 | 1.28 |
| Max drawdown (3Y) | -31.5% | -22.8% |
| Market cap | $7.3B | – |
| P/E (trailing) | 26.2 | – |
| Dividend yield | 0.48% | 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 | FSS | QQQ |
|---|---|---|
| 2022 | +8.2% | -32.6% |
| 2023 | +66.3% | +54.9% |
| 2024 | +21.1% | +25.6% |
| 2025 | +18.2% | +20.8% |
| 2026 | +11.3% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FSS and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FSS and QQQ?
The FSS/QQQ correlation stands at 0.40 on a 3-year window (1 year: 0.13, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for FSS?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 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: FSS correlations · QQQ correlations
