KMX vs QQQ: Correlation
Measured on weekly returns over the past three years, CarMax Inc (KMX) and Invesco QQQ Trust (QQQ) carry a correlation of 0.25, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMX and QQQ?
Over the past 3 years, KMX and QQQ moved with a correlation of 0.25, which is weak. Recent behaviour matches the longer record: 0.19 over 1 year against 0.25 over 3. Over 5 years the correlation is 0.37, and the annualized covariance of weekly returns is 203.3 %².
Among the 11 assets we track against KMX, QQQ sits near the bottom by co-movement, at rank #8. Correlation aside, the last 12 months split them widely, with QQQ ahead by 25.4 points (+0.9% versus +26.3%). One caveat on sizing: KMX is 2.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
KMX vs QQQ: side by side
| KMX (CarMax Inc) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +0.9% | +26.3% |
| 5-year return | -50.5% | +95.4% |
| Volatility (ann.) | 41.9% | 19.6% |
| Beta vs S&P 500 | 0.94 | 1.28 |
| Max drawdown (3Y) | -65.4% | -22.8% |
| Market cap | – | – |
| P/E (trailing) | 38.9 | – |
| Dividend yield | 0.00% | 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 | KMX | QQQ |
|---|---|---|
| 2022 | -53.2% | -32.6% |
| 2023 | +26.0% | +54.9% |
| 2024 | +6.5% | +25.6% |
| 2025 | -52.7% | +20.8% |
| 2026 | +62.1% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMX and QQQ good diversifiers for each other?
Reasonably. At 0.25, KMX and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between KMX and QQQ?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with 0.19 over the last year and 0.37 over 5 years.
Is QQQ a good diversifier for KMX?
Reasonably. At 0.25, KMX and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.25 mean?
A reading of 0.25 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/kmx-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/kmx-vs-qqq/)
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Related comparisons
Hubs: KMX correlations · QQQ correlations
