PSBD vs QQQ: Correlation
Palmer Square Capital BDC Inc. (PSBD) and Invesco QQQ Trust (QQQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.34.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSBD and QQQ?
On 3 years of weekly data the PSBD/QQQ correlation comes out at 0.34, moderate. The relationship has been stable: the 1-year correlation (0.40) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 119.3 %².
QQQ is close to the least connected end of PSBD's tracked universe, ranking #8 of 12. The last year tells two different stories: QQQ led by 40.6 percentage points, -14.3% for PSBD against +26.3% for QQQ.
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.
PSBD vs QQQ: side by side
| PSBD (Palmer Square Capital BDC Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -14.3% | +26.3% |
| 5-year return | n/a | +95.4% |
| Volatility (ann.) | 17.8% | 19.6% |
| Beta vs S&P 500 | 0.46 | 1.28 |
| Max drawdown (3Y) | -28.9% | -22.8% |
| Market cap | $0.3B | – |
| P/E (trailing) | – | – |
| 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 | PSBD | QQQ |
|---|---|---|
| 2022 | – | -32.6% |
| 2023 | – | +54.9% |
| 2024 | – | +25.6% |
| 2025 | -9.0% | +20.8% |
| 2026 | -9.4% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSBD and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between PSBD and QQQ?
The PSBD/QQQ correlation stands at 0.34 on a 3-year window (1 year: 0.40, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for PSBD?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.34 mean?
On the −1 to +1 scale, 0.34 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/psbd-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/psbd-vs-qqq/)
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Related comparisons
Hubs: PSBD correlations · QQQ correlations
