LGIH vs QQQ: Correlation
How closely do LGI Homes, Inc. (LGIH) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.24, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and QQQ?
Across a 3-year window, the weekly returns of LGIH and QQQ correlate at 0.24, weak. The link has loosened recently: the 1-year correlation (0.09) runs below the 3-year figure (0.24). Stretching to 5 years gives 0.38, with an annualized covariance of 252.9 %².
QQQ is close to the least connected end of LGIH's tracked universe, ranking #13 of 16. The last year tells two different stories: QQQ led by 35.7 percentage points, -9.4% for LGIH against +26.3% for QQQ. Note the risk asymmetry: LGIH runs 2.7 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.
LGIH vs QQQ: side by side
| LGIH (LGI Homes, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -9.4% | +26.3% |
| 5-year return | -64.2% | +95.4% |
| Volatility (ann.) | 53.2% | 19.6% |
| Beta vs S&P 500 | 1.23 | 1.28 |
| Max drawdown (3Y) | -74.8% | -22.8% |
| Market cap | $1.3B | – |
| P/E (trailing) | 20.4 | – |
| 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 | LGIH | QQQ |
|---|---|---|
| 2022 | -40.1% | -32.6% |
| 2023 | +43.8% | +54.9% |
| 2024 | -32.9% | +25.6% |
| 2025 | -51.9% | +20.8% |
| 2026 | +32.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between LGIH and QQQ?
As of 2026-08-27, the correlation of weekly returns between LGIH and QQQ is 0.24 over 3 years, 0.09 over 1 year and 0.38 over 5 years.
Is QQQ a good diversifier for LGIH?
Yes, to a useful degree: a correlation of 0.24 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.24 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lgih-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lgih-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LGIH correlations · QQQ correlations
