QQQ vs TDG: Correlation
Invesco QQQ Trust (QQQ) and TransDigm Group (TDG) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TDG?
Over the past 3 years, QQQ and TDG moved with a correlation of 0.49, which is moderate. Little has changed lately, as the 1-year reading of 0.40 lands near the 3-year figure. Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 242.6 %².
By 3-year correlation, TDG places #305 of the 4755 assets tracked against QQQ. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 35.4 percentage points (+26.3% for QQQ against -9.1% for TDG). On a rolling one-year basis the correlation drifted between 0.27 and 0.67, a moderate band.
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 TDG: side by side
| QQQ (Invesco QQQ Trust) | TDG (TransDigm Group) | |
|---|---|---|
| 1-year return | +26.3% | -9.1% |
| 5-year return | +95.4% | +136.5% |
| Volatility (ann.) | 19.6% | 25.5% |
| Beta vs S&P 500 | 1.28 | 0.91 |
| Max drawdown (3Y) | -22.8% | -25.3% |
| Market cap | – | $65.6B |
| P/E (trailing) | – | 36.6 |
| Dividend yield | 0.44% | 0.00% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | Industrials |
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 | TDG |
|---|---|---|
| 2022 | -32.6% | +1.8% |
| 2023 | +54.9% | +66.6% |
| 2024 | +25.6% | +32.3% |
| 2025 | +20.8% | +12.2% |
| 2026 | +17.7% | -10.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TDG good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and TDG?
The QQQ/TDG correlation stands at 0.49 on a 3-year window (1 year: 0.40, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is TDG a good diversifier for QQQ?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 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-tdg.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: QQQ correlations · TDG correlations
