PFSI vs QQQ: Correlation
PennyMac Financial Services, Inc. (PFSI) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.19.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PFSI and QQQ?
Over the past 3 years, PFSI and QQQ moved with a correlation of 0.19, which is weak. Recent behaviour matches the longer record: 0.19 over 1 year against 0.19 over 3. Over 5 years the correlation is 0.35, and the annualized covariance of weekly returns is 128.9 %².
Among the 14 assets we track against PFSI, QQQ sits near the bottom by co-movement, at rank #10. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 57.6 percentage points (-31.3% for PFSI against +26.3% for QQQ). Risk is not evenly split, since PFSI 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.
PFSI vs QQQ: side by side
| PFSI (PennyMac Financial Services, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -31.3% | +26.3% |
| 5-year return | +17.5% | +95.4% |
| Volatility (ann.) | 34.9% | 19.6% |
| Beta vs S&P 500 | 0.57 | 1.28 |
| Max drawdown (3Y) | -53.8% | -22.8% |
| Market cap | $3.8B | – |
| P/E (trailing) | 10.0 | – |
| Dividend yield | 1.65% | 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 | PFSI | QQQ |
|---|---|---|
| 2022 | -17.6% | -32.6% |
| 2023 | +57.8% | +54.9% |
| 2024 | +16.8% | +25.6% |
| 2025 | +30.5% | +20.8% |
| 2026 | -43.6% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PFSI and QQQ good diversifiers for each other?
Yes. With a correlation of 0.19, PFSI and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PFSI and QQQ?
The PFSI/QQQ correlation stands at 0.19 on a 3-year window (1 year: 0.19, 5 years: 0.35), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for PFSI?
Yes. With a correlation of 0.19, PFSI and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.19 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/pfsi-vs-qqq.json
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[](https://www.pairbook.io/pair/pfsi-vs-qqq/)
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Related comparisons
Hubs: PFSI correlations · QQQ correlations
