NDAQ vs QQQ: Correlation
Nasdaq, Inc. (NDAQ) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NDAQ and QQQ?
Across a 3-year window, the weekly returns of NDAQ and QQQ correlate at 0.40, moderate. The past 12 months show a weaker link (0.23) than the 3-year average (0.40). Stretching to 5 years gives 0.52, with an annualized covariance of 183.6 %².
Among the 35 assets we track against NDAQ, QQQ ranks #21 by 3-year correlation. The last year tells two different stories: QQQ led by 20.2 percentage points, +6.1% for NDAQ against +26.3% for QQQ. The rolling one-year correlation moved between 0.22 and 0.65 over the past three years, a moderate range.
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.
NDAQ vs QQQ: side by side
| NDAQ (Nasdaq, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +6.1% | +26.3% |
| 5-year return | +64.4% | +95.4% |
| Volatility (ann.) | 23.2% | 19.6% |
| Beta vs S&P 500 | 0.80 | 1.28 |
| Max drawdown (3Y) | -23.4% | -22.8% |
| Market cap | $55.5B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.13% | 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 | NDAQ | QQQ |
|---|---|---|
| 2022 | -11.2% | -32.6% |
| 2023 | -3.7% | +54.9% |
| 2024 | +34.8% | +25.6% |
| 2025 | +27.2% | +20.8% |
| 2026 | +3.0% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NDAQ and QQQ good diversifiers for each other?
Reasonably. At 0.40, NDAQ and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between NDAQ and QQQ?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.23 over the last year and 0.52 over 5 years.
Is QQQ a good diversifier for NDAQ?
Reasonably. At 0.40, NDAQ and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 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
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Related comparisons
Hubs: NDAQ correlations · QQQ correlations
