QQQ vs TDS: Correlation
How closely do Invesco QQQ Trust (QQQ) and Telephone and Data Systems, Inc. (TDS) trade together? Their weekly returns over three years give a correlation of 0.20, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TDS?
Across a 3-year window, the weekly returns of QQQ and TDS correlate at 0.20, weak. Recent behaviour matches the longer record: 0.20 over 1 year against 0.20 over 3. Stretching to 5 years gives 0.13, with an annualized covariance of 184.0 %².
Among the 4755 assets we track against QQQ, TDS ranks #2860 by 3-year correlation. The last year tells two different stories: QQQ led by 43.3 percentage points, +26.3% for QQQ against -17.0% for TDS. Note the risk asymmetry: TDS runs 2.4 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 TDS: side by side
| QQQ (Invesco QQQ Trust) | TDS (Telephone and Data Systems, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -17.0% |
| 5-year return | +95.4% | +91.9% |
| Volatility (ann.) | 19.6% | 46.7% |
| Beta vs S&P 500 | 1.28 | 0.86 |
| Max drawdown (3Y) | -22.8% | -33.4% |
| Market cap | – | $3.8B |
| P/E (trailing) | – | 8.3 |
| Dividend yield | 0.44% | 0.48% |
| 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 | TDS |
|---|---|---|
| 2022 | -32.6% | -45.3% |
| 2023 | +54.9% | +86.3% |
| 2024 | +25.6% | +89.0% |
| 2025 | +20.8% | +20.7% |
| 2026 | +17.7% | -19.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TDS good diversifiers for each other?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and TDS?
Using weekly returns as of 2026-08-27: 0.20 over 3 years, with 0.20 over the last year and 0.13 over 5 years.
Is TDS a good diversifier for QQQ?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.20 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
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Related comparisons
Hubs: QQQ correlations · TDS correlations
