KARO vs QUAL: Correlation
Measured on weekly returns over the past three years, Karooooo Ltd. (KARO) and iShares MSCI USA Quality Factor ETF (QUAL) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KARO and QUAL?
Over the past 3 years, KARO and QUAL moved with a correlation of 0.44, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.29 versus 0.44 over 3 years. Over 5 years the correlation is 0.42, and the annualized covariance of weekly returns is 241.5 %².
Few assets follow KARO as closely as QUAL, which ranks #2 of 10 tracked partners. Over the last 12 months KARO came out ahead by 13.3 percentage points (+33.0% against +19.7%). Note the risk asymmetry: KARO runs 2.8 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.
KARO vs QUAL: side by side
| KARO (Karooooo Ltd.) | QUAL (iShares MSCI USA Quality Factor ETF) | |
|---|---|---|
| 1-year return | +33.0% | +19.7% |
| 5-year return | +131.7% | +68.0% |
| Volatility (ann.) | 39.0% | 14.0% |
| Beta vs S&P 500 | 1.10 | 0.93 |
| Max drawdown (3Y) | -32.3% | -18.0% |
| Market cap | $2.1B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 33.69% | 0.86% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $46.5B |
| Sector / category | US Listed | ETF · US Style |
QUAL, iShares's Large Blend fund, carries $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | KARO | QUAL |
|---|---|---|
| 2022 | -41.5% | -20.5% |
| 2023 | +8.0% | +30.9% |
| 2024 | +91.5% | +22.3% |
| 2025 | +3.5% | +12.7% |
| 2026 | +50.9% | +13.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KARO and QUAL good diversifiers for each other?
Reasonably. At 0.44, KARO and QUAL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between KARO and QUAL?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.29 over the last year and 0.42 over 5 years.
Is QUAL a good diversifier for KARO?
Reasonably. At 0.44, KARO and QUAL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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-qual.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/karo-vs-qual/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: KARO correlations · QUAL correlations
