IBM vs QQQ: Correlation
Measured on weekly returns over the past three years, IBM (IBM) and Invesco QQQ Trust (QQQ) carry a correlation of 0.31, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and QQQ?
Across a 3-year window, the weekly returns of IBM and QQQ correlate at 0.31, moderate. Recent behaviour matches the longer record: 0.34 over 1 year against 0.31 over 3. Stretching to 5 years gives 0.33, with an annualized covariance of 207.6 %².
Among the 28 assets we track against IBM, QQQ ranks #18 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 26.2 points (+0.1% versus +26.3%). On a rolling one-year basis the correlation drifted between 0.13 and 0.52, a moderate band. Note the risk asymmetry: IBM runs 1.8 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.
IBM vs QQQ: side by side
| IBM (IBM) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +0.1% | +26.3% |
| 5-year return | +117.6% | +95.4% |
| Volatility (ann.) | 34.7% | 19.6% |
| Beta vs S&P 500 | 0.78 | 1.28 |
| Max drawdown (3Y) | -37.5% | -22.8% |
| Market cap | $225.0B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 2.93% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Information Technology | 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 | IBM | QQQ |
|---|---|---|
| 2022 | +10.6% | -32.6% |
| 2023 | +21.8% | +54.9% |
| 2024 | +39.3% | +25.6% |
| 2025 | +38.2% | +20.8% |
| 2026 | -17.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBM and QQQ good diversifiers for each other?
Reasonably. At 0.31, IBM and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBM and QQQ?
The IBM/QQQ correlation stands at 0.31 on a 3-year window (1 year: 0.34, 5 years: 0.33), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for IBM?
Reasonably. At 0.31, IBM and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.31 mean?
On the −1 to +1 scale, 0.31 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: IBM correlations · QQQ correlations
