PCTY vs QQQ: Correlation
Paylocity Holding Corporation (PCTY) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCTY and QQQ?
Over the past 3 years, PCTY and QQQ moved with a correlation of 0.22, which is weak. Lately the two have drifted apart, with the 1-year correlation at 0.06 versus 0.22 over 3 years. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 150.7 %².
QQQ is close to the least connected end of PCTY's tracked universe, ranking #10 of 13. Correlation aside, the last 12 months split them widely, with QQQ ahead by 39.0 points (-12.7% versus +26.3%). Risk is not evenly split, since PCTY carries 1.8 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.
PCTY vs QQQ: side by side
| PCTY (Paylocity Holding Corporation) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -12.7% | +26.3% |
| 5-year return | -41.2% | +95.4% |
| Volatility (ann.) | 35.4% | 19.6% |
| Beta vs S&P 500 | 0.62 | 1.28 |
| Max drawdown (3Y) | -56.3% | -22.8% |
| Market cap | $8.8B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 0.00% | 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 | PCTY | QQQ |
|---|---|---|
| 2022 | -17.7% | -32.6% |
| 2023 | -15.1% | +54.9% |
| 2024 | +21.0% | +25.6% |
| 2025 | -23.5% | +20.8% |
| 2026 | +3.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PCTY and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between PCTY and QQQ?
Using weekly returns as of 2026-08-27: 0.22 over 3 years, with 0.06 over the last year and 0.46 over 5 years.
Is QQQ a good diversifier for PCTY?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.22 mean?
A reading of 0.22 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/pcty-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pcty-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PCTY correlations · QQQ correlations
