KMT vs QQQ: Correlation
Kennametal Inc. (KMT) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.19.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMT and QQQ?
Over the past 3 years, KMT and QQQ moved with a correlation of 0.19, which is weak. The past 12 months show a weaker link (-0.09) than the 3-year average (0.19). Over 5 years the correlation is 0.39, and the annualized covariance of weekly returns is 125.9 %².
Out of 21 assets tracked against KMT, QQQ lands near the bottom at #18. Their recent paths diverged sharply: over the last 12 months KMT outperformed by 17.0 percentage points (+43.3% for KMT against +26.3% for QQQ). Note the risk asymmetry: KMT runs 1.7 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.
KMT vs QQQ: side by side
| KMT (Kennametal Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +43.3% | +26.3% |
| 5-year return | -6.6% | +95.4% |
| Volatility (ann.) | 33.9% | 19.6% |
| Beta vs S&P 500 | 0.73 | 1.28 |
| Max drawdown (3Y) | -42.9% | -22.8% |
| Market cap | $2.3B | – |
| P/E (trailing) | 6.8 | – |
| Dividend yield | 2.67% | 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 | KMT | QQQ |
|---|---|---|
| 2022 | -31.0% | -32.6% |
| 2023 | +10.5% | +54.9% |
| 2024 | -3.9% | +25.6% |
| 2025 | +22.6% | +20.8% |
| 2026 | +8.1% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMT and QQQ good diversifiers for each other?
By historical standards, yes. A correlation of 0.19 means the two rarely move for the same reasons.
FAQ
What is the correlation between KMT and QQQ?
As of 2026-08-27, the correlation of weekly returns between KMT and QQQ is 0.19 over 3 years, -0.09 over 1 year and 0.39 over 5 years.
Is QQQ a good diversifier for KMT?
By historical standards, yes. A correlation of 0.19 means the two rarely move for the same reasons.
What does a correlation of 0.19 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.
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Related comparisons
Hubs: KMT correlations · QQQ correlations
