QQQ vs TER: Correlation
Measured on weekly returns over the past three years, Invesco QQQ Trust (QQQ) and Teradyne (TER) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TER?
Over the past 3 years, QQQ and TER moved with a correlation of 0.51, which is moderate. The link has loosened recently: the 1-year correlation (0.35) runs below the 3-year figure (0.51). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 523.1 %².
By 3-year correlation, TER places #256 of the 4755 assets tracked against QQQ. Their recent paths diverged sharply: over the last 12 months TER outperformed by 192.5 percentage points (+26.3% for QQQ against +218.8% for TER). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.25 to 0.76. One caveat on sizing: TER is 2.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TER: side by side
| QQQ (Invesco QQQ Trust) | TER (Teradyne) | |
|---|---|---|
| 1-year return | +26.3% | +218.8% |
| 5-year return | +95.4% | +207.9% |
| Volatility (ann.) | 19.6% | 52.5% |
| Beta vs S&P 500 | 1.28 | 1.70 |
| Max drawdown (3Y) | -22.8% | -58.2% |
| Market cap | – | $58.2B |
| P/E (trailing) | – | 50.0 |
| Dividend yield | 0.44% | 0.14% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | Information Technology |
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 | TER |
|---|---|---|
| 2022 | -32.6% | -46.3% |
| 2023 | +54.9% | +24.8% |
| 2024 | +25.6% | +16.5% |
| 2025 | +20.8% | +54.4% |
| 2026 | +17.7% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TER represents 0.25% of QQQ's portfolio, so part of any move in QQQ is TER itself, and the correlation between them is partly mechanical.
Are QQQ and TER good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between QQQ and TER?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.35 over the last year and 0.59 over 5 years.
Is TER a good diversifier for QQQ?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 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-ter.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/qqq-vs-ter/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · TER correlations
