QQQ vs RCAT: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Red Cat Holdings, Inc. (RCAT) carry a correlation of 0.16, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and RCAT?
Across a 3-year window, the weekly returns of QQQ and RCAT correlate at 0.16, weak. The past 12 months show a tighter link (0.35) than the 3-year average (0.16). Stretching to 5 years gives 0.19, with an annualized covariance of 372.2 %².
Within QQQ's tracked universe of 4755 assets, RCAT comes in at #3282 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 22.9 points (+26.3% versus +3.4%). One caveat on sizing: RCAT is 6.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
QQQ vs RCAT: side by side
| QQQ (Invesco QQQ Trust) | RCAT (Red Cat Holdings, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | +3.4% |
| 5-year return | +95.4% | +239.9% |
| Volatility (ann.) | 19.6% | 121.3% |
| Beta vs S&P 500 | 1.28 | 1.43 |
| Max drawdown (3Y) | -22.8% | -67.2% |
| Market cap | – | $1.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.44% | 0.00% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
On the fund side, QQQ sits in the Large Growth category at Invesco, with $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | QQQ | RCAT |
|---|---|---|
| 2022 | -32.6% | -54.8% |
| 2023 | +54.9% | -6.4% |
| 2024 | +25.6% | +1360.2% |
| 2025 | +20.8% | -38.3% |
| 2026 | +17.7% | +17.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and RCAT good diversifiers for each other?
Yes. With a correlation of 0.16, QQQ and RCAT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between QQQ and RCAT?
As of 2026-08-27, the correlation of weekly returns between QQQ and RCAT is 0.16 over 3 years, 0.35 over 1 year and 0.19 over 5 years.
Is RCAT a good diversifier for QQQ?
Yes. With a correlation of 0.16, QQQ and RCAT have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.16 mean?
A reading of 0.16 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/qqq-vs-rcat.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qqq-vs-rcat/)
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Related comparisons
Hubs: QQQ correlations · RCAT correlations
