PSEC vs QQQ: Correlation
Prospect Capital Corporation - Closed End Fund (PSEC) and Invesco QQQ Trust (QQQ) show a weak relationship: their 3-year correlation of weekly returns is 0.20.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSEC and QQQ?
Across a 3-year window, the weekly returns of PSEC and QQQ correlate at 0.20, weak. Recent behaviour matches the longer record: 0.12 over 1 year against 0.20 over 3. Stretching to 5 years gives 0.33, with an annualized covariance of 121.9 %².
Among the 12 assets we track against PSEC, QQQ sits near the bottom by co-movement, at rank #9. The last year tells two different stories: QQQ led by 32.1 percentage points, -5.8% for PSEC against +26.3% for QQQ. Risk is not evenly split, since PSEC carries 1.6 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.
PSEC vs QQQ: side by side
| PSEC (Prospect Capital Corporation - Closed End Fund) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -5.8% | +26.3% |
| 5-year return | -45.5% | +95.4% |
| Volatility (ann.) | 31.6% | 19.6% |
| Beta vs S&P 500 | 0.59 | 1.28 |
| Max drawdown (3Y) | -50.5% | -22.8% |
| Market cap | $1.2B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 25.97% | 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 | PSEC | QQQ |
|---|---|---|
| 2022 | -8.6% | -32.6% |
| 2023 | -4.1% | +54.9% |
| 2024 | -18.2% | +25.6% |
| 2025 | -28.9% | +20.8% |
| 2026 | -1.5% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSEC and QQQ good diversifiers for each other?
Reasonably. At 0.20, PSEC and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PSEC and QQQ?
The PSEC/QQQ correlation stands at 0.20 on a 3-year window (1 year: 0.12, 5 years: 0.33), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for PSEC?
Reasonably. At 0.20, PSEC and QQQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.20 mean?
A reading of 0.20 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/psec-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/psec-vs-qqq/)
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Related comparisons
Hubs: PSEC correlations · QQQ correlations
