MSFT vs QQQ: Correlation
How closely do Microsoft (MSFT) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSFT and QQQ?
On 3 years of weekly data the MSFT/QQQ correlation comes out at 0.61, strong. The link has loosened recently: the 1-year correlation (0.48) runs below the 3-year figure (0.61). The 5-year figure is 0.73, and annualized covariance runs at 330.6 %².
Among the 39 assets we track against MSFT, QQQ ranks #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 25.8 points (+0.5% versus +26.3%). On a rolling one-year basis the correlation drifted between 0.48 and 0.84, a moderate band.
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.
MSFT vs QQQ: side by side
| MSFT (Microsoft) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +0.5% | +26.3% |
| 5-year return | +73.3% | +95.4% |
| Volatility (ann.) | 27.5% | 19.6% |
| Beta vs S&P 500 | 1.12 | 1.28 |
| Max drawdown (3Y) | -34.5% | -22.8% |
| Market cap | $3,750.3B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 0.73% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Information Technology | 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 | MSFT | QQQ |
|---|---|---|
| 2022 | -28.0% | -32.6% |
| 2023 | +58.2% | +54.9% |
| 2024 | +12.9% | +25.6% |
| 2025 | +15.6% | +20.8% |
| 2026 | +5.1% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 5.93% of QQQ is MSFT itself, so the fund partly moves with the stock by construction.
Are MSFT and QQQ good diversifiers for each other?
Only partially. A correlation of 0.61 means MSFT and QQQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MSFT and QQQ?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.48 over the last year and 0.73 over 5 years.
Is QQQ a good diversifier for MSFT?
Only partially. A correlation of 0.61 means MSFT and QQQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 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/msft-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/msft-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MSFT correlations · QQQ correlations
