QQQ vs STEM: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Stem, Inc. (STEM) carry a correlation of 0.25, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and STEM?
On 3 years of weekly data the QQQ/STEM correlation comes out at 0.25, weak. The link has tightened recently: the 1-year correlation (0.48) runs above the 3-year figure (0.25). The 5-year figure is 0.34, and annualized covariance runs at 640.2 %².
Among the 4755 assets we track against QQQ, STEM ranks #2177 by 3-year correlation. The last year tells two different stories: QQQ led by 91.2 percentage points, +26.3% for QQQ against -64.9% for STEM. Note the risk asymmetry: STEM runs 6.6 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 STEM: side by side
| QQQ (Invesco QQQ Trust) | STEM (Stem, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -64.9% |
| 5-year return | +95.4% | -98.9% |
| Volatility (ann.) | 19.6% | 129.9% |
| Beta vs S&P 500 | 1.28 | 2.49 |
| Max drawdown (3Y) | -22.8% | -95.5% |
| Market cap | – | $0.1B |
| 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 |
QQQ, Invesco's Large Growth fund, carries $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | QQQ | STEM |
|---|---|---|
| 2022 | -32.6% | -52.9% |
| 2023 | +54.9% | -56.6% |
| 2024 | +25.6% | -84.5% |
| 2025 | +20.8% | +24.8% |
| 2026 | +17.7% | -62.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and STEM good diversifiers for each other?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and STEM?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with 0.48 over the last year and 0.34 over 5 years.
Is STEM a good diversifier for QQQ?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.25 mean?
On the −1 to +1 scale, 0.25 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-stem.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qqq-vs-stem/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · STEM correlations
