PEP vs QQQ: Correlation
Measured on weekly returns over the past three years, PepsiCo (PEP) and Invesco QQQ Trust (QQQ) carry a correlation of -0.02, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEP and QQQ?
On 3 years of weekly data the PEP/QQQ correlation comes out at -0.02, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.13 versus -0.02 over 3 years. The 5-year figure is 0.17, and annualized covariance runs at -7.7 %².
Among the 38 assets we track against PEP, QQQ ranks #26 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 27.9 percentage points (-1.6% for PEP against +26.3% for QQQ). Across three years, the rolling one-year figure varied moderately, from -0.18 to 0.28.
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.
PEP vs QQQ: side by side
| PEP (PepsiCo) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -1.6% | +26.3% |
| 5-year return | +4.9% | +95.4% |
| Volatility (ann.) | 19.1% | 19.6% |
| Beta vs S&P 500 | 0.13 | 1.28 |
| Max drawdown (3Y) | -27.5% | -22.8% |
| Market cap | $190.9B | – |
| P/E (trailing) | 18.6 | – |
| Dividend yield | 4.04% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | Consumer Staples | 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 | PEP | QQQ |
|---|---|---|
| 2022 | +6.8% | -32.6% |
| 2023 | -3.3% | +54.9% |
| 2024 | -7.6% | +25.6% |
| 2025 | -1.8% | +20.8% |
| 2026 | -0.7% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.86% of QQQ is PEP itself, so the fund partly moves with the stock by construction.
Are PEP and QQQ good diversifiers for each other?
Yes. With a correlation of -0.02, PEP and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PEP and QQQ?
Using weekly returns as of 2026-08-27: -0.02 over 3 years, with -0.13 over the last year and 0.17 over 5 years.
Is QQQ a good diversifier for PEP?
Yes. With a correlation of -0.02, PEP and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.02 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pep-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pep-vs-qqq/)
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Related comparisons
Hubs: PEP correlations · QQQ correlations
