ITW vs QQQ: Correlation
How closely do Illinois Tool Works (ITW) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and QQQ?
Over the past 3 years, ITW and QQQ moved with a correlation of 0.33, which is moderate. The past 12 months show a weaker link (-0.01) than the 3-year average (0.33). Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 123.0 %².
Among the 81 assets we track against ITW, QQQ ranks #71 by 3-year correlation. The last year tells two different stories: QQQ led by 18.1 percentage points, +8.2% for ITW against +26.3% for QQQ. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.04 to 0.66.
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.
ITW vs QQQ: side by side
| ITW (Illinois Tool Works) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +8.2% | +26.3% |
| 5-year return | +36.1% | +95.4% |
| Volatility (ann.) | 19.0% | 19.6% |
| Beta vs S&P 500 | 0.64 | 1.28 |
| Max drawdown (3Y) | -20.6% | -22.8% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 2.26% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Industrials | 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 | ITW | QQQ |
|---|---|---|
| 2022 | -8.5% | -32.6% |
| 2023 | +21.6% | +54.9% |
| 2024 | -1.0% | +25.6% |
| 2025 | -0.4% | +20.8% |
| 2026 | +15.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ITW and QQQ?
As of 2026-08-27, the correlation of weekly returns between ITW and QQQ is 0.33 over 3 years, -0.01 over 1 year and 0.51 over 5 years.
Is QQQ a good diversifier for ITW?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.33 mean?
A reading of 0.33 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ITW correlations · QQQ correlations
