KARO vs QQQ: Correlation
Karooooo Ltd. (KARO) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.36.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KARO and QQQ?
On 3 years of weekly data the KARO/QQQ correlation comes out at 0.36, moderate. The link has loosened recently: the 1-year correlation (0.09) runs below the 3-year figure (0.36). The 5-year figure is 0.36, and annualized covariance runs at 277.8 %².
Out of 10 assets tracked against KARO, QQQ lands near the bottom at #7. The trailing year gives KARO the advantage: +33.0% versus +26.3%, a 6.7-point spread. Note the risk asymmetry: KARO runs 2.0 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.
KARO vs QQQ: side by side
| KARO (Karooooo Ltd.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +33.0% | +26.3% |
| 5-year return | +131.7% | +95.4% |
| Volatility (ann.) | 39.0% | 19.6% |
| Beta vs S&P 500 | 1.10 | 1.28 |
| Max drawdown (3Y) | -32.3% | -22.8% |
| Market cap | $2.1B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 33.69% | 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 | KARO | QQQ |
|---|---|---|
| 2022 | -41.5% | -32.6% |
| 2023 | +8.0% | +54.9% |
| 2024 | +91.5% | +25.6% |
| 2025 | +3.5% | +20.8% |
| 2026 | +50.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KARO and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.36 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between KARO and QQQ?
The KARO/QQQ correlation stands at 0.36 on a 3-year window (1 year: 0.09, 5 years: 0.36), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for KARO?
Yes, to a useful degree: a correlation of 0.36 leaves real independence between the two, which historically damped combined 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
$ curl https://www.pairbook.io/api/v1/pairs/karo-vs-qqq.json
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[](https://www.pairbook.io/pair/karo-vs-qqq/)
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Related comparisons
Hubs: KARO correlations · QQQ correlations
