NXDT vs QQQ: Correlation
How closely do NexPoint Diversified Real Estate Trust (NXDT) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.17, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NXDT and QQQ?
Over the past 3 years, NXDT and QQQ moved with a correlation of 0.17, which is weak. Recent behaviour matches the longer record: 0.10 over 1 year against 0.17 over 3. Over 5 years the correlation is 0.24, and the annualized covariance of weekly returns is 164.3 %².
Out of 12 assets tracked against NXDT, QQQ lands near the bottom at #9. The last year tells two different stories: NXDT led by 33.4 percentage points, +59.7% for NXDT against +26.3% for QQQ. Note the risk asymmetry: NXDT runs 2.5 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.
NXDT vs QQQ: side by side
| NXDT (NexPoint Diversified Real Estate Trust) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +59.7% | +26.3% |
| 5-year return | -44.2% | +95.4% |
| Volatility (ann.) | 48.6% | 19.6% |
| Beta vs S&P 500 | 0.90 | 1.28 |
| Max drawdown (3Y) | -65.1% | -22.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 10.87% | 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 | NXDT | QQQ |
|---|---|---|
| 2022 | -14.0% | -32.6% |
| 2023 | -24.9% | +54.9% |
| 2024 | -15.0% | +25.6% |
| 2025 | -25.8% | +20.8% |
| 2026 | +51.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NXDT and QQQ good diversifiers for each other?
Yes. With a correlation of 0.17, NXDT and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between NXDT and QQQ?
The NXDT/QQQ correlation stands at 0.17 on a 3-year window (1 year: 0.10, 5 years: 0.24), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for NXDT?
Yes. With a correlation of 0.17, NXDT and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.17 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.
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Related comparisons
Hubs: NXDT correlations · QQQ correlations
