QQQ vs RWT: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Redwood Trust, Inc. (RWT) carry a correlation of 0.32, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and RWT?
On 3 years of weekly data the QQQ/RWT correlation comes out at 0.32, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.20 versus 0.32 over 3 years. The 5-year figure is 0.45, and annualized covariance runs at 199.2 %².
Among the 4755 assets we track against QQQ, RWT ranks #1333 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 38.1 points (+26.3% versus -11.8%). Risk is not evenly split, since RWT 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.
QQQ vs RWT: side by side
| QQQ (Invesco QQQ Trust) | RWT (Redwood Trust, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -11.8% |
| 5-year return | +95.4% | -35.7% |
| Volatility (ann.) | 19.6% | 31.6% |
| Beta vs S&P 500 | 1.28 | 0.87 |
| Max drawdown (3Y) | -22.8% | -33.8% |
| Market cap | – | $0.6B |
| P/E (trailing) | – | – |
| Dividend yield | 0.44% | 15.62% |
| 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 | RWT |
|---|---|---|
| 2022 | -32.6% | -42.3% |
| 2023 | +54.9% | +21.6% |
| 2024 | +25.6% | -2.6% |
| 2025 | +20.8% | -4.1% |
| 2026 | +17.7% | -10.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and RWT good diversifiers for each other?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and RWT?
Using weekly returns as of 2026-08-27: 0.32 over 3 years, with 0.20 over the last year and 0.45 over 5 years.
Is RWT a good diversifier for QQQ?
A fair diversifier. At 0.32, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.32 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/qqq-vs-rwt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-rwt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · RWT correlations
