MS vs QQQ: Correlation
Measured on weekly returns over the past three years, Morgan Stanley (MS) and Invesco QQQ Trust (QQQ) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MS and QQQ?
On 3 years of weekly data the MS/QQQ correlation comes out at 0.62, strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.62 over 3. The 5-year figure is 0.58, and annualized covariance runs at 341.3 %².
By 3-year correlation, QQQ places #30 of the 46 assets tracked against MS. Their recent paths diverged sharply: over the last 12 months MS outperformed by 20.8 percentage points (+47.1% for MS against +26.3% for QQQ). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.28 to 0.83.
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.
MS vs QQQ: side by side
| MS (Morgan Stanley) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +47.1% | +26.3% |
| 5-year return | +142.0% | +95.4% |
| Volatility (ann.) | 28.3% | 19.6% |
| Beta vs S&P 500 | 1.43 | 1.28 |
| Max drawdown (3Y) | -29.2% | -22.8% |
| Market cap | $337.5B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 1.94% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Financials | 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 | MS | QQQ |
|---|---|---|
| 2022 | -10.3% | -32.6% |
| 2023 | +13.9% | +54.9% |
| 2024 | +39.7% | +25.6% |
| 2025 | +45.2% | +20.8% |
| 2026 | +23.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MS and QQQ good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MS and QQQ?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.66 over the last year and 0.58 over 5 years.
Is QQQ a good diversifier for MS?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 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/ms-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ms-vs-qqq/)
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Related comparisons
Hubs: MS correlations · QQQ correlations
