QQQ vs SDHC: Correlation
How closely do Invesco QQQ Trust (QQQ) and Smith Douglas Homes Corp. (SDHC) trade together? Their weekly returns over three years give a correlation of 0.23, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and SDHC?
Over the past 3 years, QQQ and SDHC moved with a correlation of 0.23, which is weak. The relationship has been stable: the 1-year correlation (0.15) sits close to the 3-year figure. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 223.5 %².
Within QQQ's tracked universe of 4755 assets, SDHC comes in at #2440 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 64.6 percentage points (+26.3% for QQQ against -38.3% for SDHC). Note the risk asymmetry: SDHC runs 2.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 SDHC: side by side
| QQQ (Invesco QQQ Trust) | SDHC (Smith Douglas Homes Corp.) | |
|---|---|---|
| 1-year return | +26.3% | -38.3% |
| 5-year return | +95.4% | n/a |
| Volatility (ann.) | 19.6% | 49.6% |
| Beta vs S&P 500 | 1.28 | 1.07 |
| Max drawdown (3Y) | -22.8% | -72.0% |
| Market cap | – | $0.1B |
| P/E (trailing) | – | 16.9 |
| Dividend yield | 0.44% | 0.00% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
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 | QQQ | SDHC |
|---|---|---|
| 2022 | -32.6% | – |
| 2023 | +54.9% | – |
| 2024 | +25.6% | – |
| 2025 | +20.8% | -34.6% |
| 2026 | +17.7% | -27.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and SDHC good diversifiers for each other?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and SDHC?
The QQQ/SDHC correlation stands at 0.23 on a 3-year window (1 year: 0.15, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is SDHC a good diversifier for QQQ?
A fair diversifier. At 0.23, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.23 mean?
On the −1 to +1 scale, 0.23 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/qqq-vs-sdhc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-sdhc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QQQ correlations · SDHC correlations
