PAI vs QQQ: Correlation
How closely do Western Asset Investment Grade Income Fund Inc. (PAI) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAI and QQQ?
Across a 3-year window, the weekly returns of PAI and QQQ correlate at 0.33, moderate. The link has tightened recently: the 1-year correlation (0.44) runs above the 3-year figure (0.33). Stretching to 5 years gives 0.39, with an annualized covariance of 63.4 %².
QQQ is close to the least connected end of PAI's tracked universe, ranking #7 of 11. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 26.9 percentage points (-0.6% for PAI against +26.3% for QQQ). Risk is not evenly split, since QQQ carries 2.0 times the volatility of the other side.
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.
PAI vs QQQ: side by side
| PAI (Western Asset Investment Grade Income Fund Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -0.6% | +26.3% |
| 5-year return | -4.0% | +95.4% |
| Volatility (ann.) | 10.0% | 19.6% |
| Beta vs S&P 500 | 0.28 | 1.28 |
| Max drawdown (3Y) | -8.9% | -22.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 2.65% | 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 | PAI | QQQ |
|---|---|---|
| 2022 | -22.5% | -32.6% |
| 2023 | +9.1% | +54.9% |
| 2024 | +9.2% | +25.6% |
| 2025 | +5.4% | +20.8% |
| 2026 | -1.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PAI and QQQ good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PAI and QQQ?
Using weekly returns as of 2026-08-27: 0.33 over 3 years, with 0.44 over the last year and 0.39 over 5 years.
Is QQQ a good diversifier for PAI?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.33 mean?
A reading of 0.33 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/pai-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pai-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PAI correlations · QQQ correlations
