QQQ vs SHY: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and iShares 1-3 Year Treasury Bond ETF (SHY) carry a correlation of -0.01, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and SHY?
Over the past 3 years, QQQ and SHY moved with a correlation of -0.01, which is near zero, meaning they move largely independently. Lately the two have moved closer together, with the 1-year correlation at 0.15 versus -0.01 over 3 years. Over 5 years the correlation is 0.14, and the annualized covariance of weekly returns is -0.3 %².
By 3-year correlation, SHY places #4530 of the 4755 assets tracked against QQQ. The last year tells two different stories: QQQ led by 23.8 percentage points, +26.3% for QQQ against +2.5% for SHY. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.52 to 0.40. Note the risk asymmetry: QQQ runs 12.2 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 SHY: side by side
| QQQ (Invesco QQQ Trust) | SHY (iShares 1-3 Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +26.3% | +2.5% |
| 5-year return | +95.4% | +9.6% |
| Volatility (ann.) | 19.6% | 1.6% |
| Beta vs S&P 500 | 1.28 | 0.00 |
| Max drawdown (3Y) | -22.8% | -1.0% |
| Dividend yield | 0.44% | 3.65% |
| Expense ratio | 0.18% | 0.15% |
| Assets under management | $452.8B | $25.1B |
| Sector / category | ETF · US Growth & Tech | ETF · Bonds |
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. SHY, iShares's Short Government fund, carries $25.1B under management, a 0.15% expense ratio, a 3.65% trailing dividend yield.
Year-by-year returns
| Year | QQQ | SHY |
|---|---|---|
| 2022 | -32.6% | -3.9% |
| 2023 | +54.9% | +4.2% |
| 2024 | +25.6% | +3.9% |
| 2025 | +20.8% | +5.0% |
| 2026 | +17.7% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and SHY good diversifiers for each other?
By historical standards, yes. A correlation of -0.01 means the two rarely move for the same reasons.
FAQ
What is the correlation between QQQ and SHY?
As of 2026-08-27, the correlation of weekly returns between QQQ and SHY is -0.01 over 3 years, 0.15 over 1 year and 0.14 over 5 years.
Is SHY a good diversifier for QQQ?
By historical standards, yes. A correlation of -0.01 means the two rarely move for the same reasons.
What does a correlation of -0.01 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-shy.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-shy/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · SHY correlations
