QQQ vs TEM: Correlation
How closely do Invesco QQQ Trust (QQQ) and Tempus AI, Inc. (TEM) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TEM?
On 3 years of weekly data the QQQ/TEM correlation comes out at 0.38, moderate. The relationship has been stable: the 1-year correlation (0.33) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 822.2 %².
By 3-year correlation, TEM places #799 of the 4755 assets tracked against QQQ. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 29.8 percentage points (+26.3% for QQQ against -3.5% for TEM). Note the risk asymmetry: TEM runs 5.3 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 TEM: side by side
| QQQ (Invesco QQQ Trust) | TEM (Tempus AI, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -3.5% |
| 5-year return | +95.4% | n/a |
| Volatility (ann.) | 19.6% | 104.7% |
| Beta vs S&P 500 | 1.28 | 3.25 |
| Max drawdown (3Y) | -22.8% | -59.8% |
| Market cap | – | $12.8B |
| 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 |
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 | TEM |
|---|---|---|
| 2022 | -32.6% | – |
| 2023 | +54.9% | – |
| 2024 | +25.6% | – |
| 2025 | +20.8% | +74.9% |
| 2026 | +17.7% | +19.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TEM good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between QQQ and TEM?
The QQQ/TEM correlation stands at 0.38 on a 3-year window (1 year: 0.33, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is TEM a good diversifier for QQQ?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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.
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Related comparisons
Hubs: QQQ correlations · TEM correlations
