MSFT vs QQQM: Correlation
Measured on weekly returns over the past three years, Microsoft (MSFT) and Invesco Nasdaq 100 ETF (QQQM) 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 MSFT and QQQM?
On 3 years of weekly data the MSFT/QQQM correlation comes out at 0.62, strong. The link has loosened recently: the 1-year correlation (0.48) runs below the 3-year figure (0.62). The 5-year figure is 0.73, and annualized covariance runs at 329.4 %².
Among the 39 assets we track against MSFT, QQQM ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQM outperformed by 25.9 percentage points (+0.5% for MSFT against +26.4% for QQQM). 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 QQQM: side by side
| MSFT (Microsoft) | QQQM (Invesco Nasdaq 100 ETF) | |
|---|---|---|
| 1-year return | +0.5% | +26.4% |
| 5-year return | +73.3% | +96.1% |
| Volatility (ann.) | 27.5% | 19.5% |
| Beta vs S&P 500 | 1.12 | 1.28 |
| Max drawdown (3Y) | -34.5% | -22.7% |
| Market cap | $3,750.3B | – |
| P/E (trailing) | 28.1 | – |
| Dividend yield | 0.73% | 0.46% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $97.1B |
| Sector / category | Information Technology | ETF · US Growth & Tech |
QQQM is a Large Growth fund from Invesco: $97.1B under management, 105 holdings, a 0.15% expense ratio, a 0.46% trailing dividend yield.
Year-by-year returns
| Year | MSFT | QQQM |
|---|---|---|
| 2022 | -28.0% | -32.5% |
| 2023 | +58.2% | +55.0% |
| 2024 | +12.9% | +25.7% |
| 2025 | +15.6% | +20.9% |
| 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 QQQM is MSFT itself, so the fund partly moves with the stock by construction.
Are MSFT and QQQM good diversifiers for each other?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between MSFT and QQQM?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.48 over the last year and 0.73 over 5 years.
Is QQQM a good diversifier for MSFT?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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/msft-vs-qqqm.json
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[](https://www.pairbook.io/pair/msft-vs-qqqm/)
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Related comparisons
Hubs: MSFT correlations · QQQM correlations
