QQQ vs TSEM: Correlation
How closely do Invesco QQQ Trust (QQQ) and Tower Semiconductor Ltd. (TSEM) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and TSEM?
Across a 3-year window, the weekly returns of QQQ and TSEM correlate at 0.42, moderate. The past 12 months show a weaker link (0.25) than the 3-year average (0.42). Stretching to 5 years gives 0.34, with an annualized covariance of 423.7 %².
By 3-year correlation, TSEM places #533 of the 4755 assets tracked against QQQ. Correlation aside, the last 12 months split them widely, with TSEM ahead by 246.3 points (+26.3% versus +272.6%). Note the risk asymmetry: TSEM runs 2.7 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 TSEM: side by side
| QQQ (Invesco QQQ Trust) | TSEM (Tower Semiconductor Ltd.) | |
|---|---|---|
| 1-year return | +26.3% | +272.6% |
| 5-year return | +95.4% | +648.0% |
| Volatility (ann.) | 19.6% | 52.1% |
| Beta vs S&P 500 | 1.28 | 1.55 |
| Max drawdown (3Y) | -22.8% | -45.8% |
| Market cap | – | $24.8B |
| P/E (trailing) | – | 87.6 |
| 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 | TSEM |
|---|---|---|
| 2022 | -32.6% | +8.9% |
| 2023 | +54.9% | -29.4% |
| 2024 | +25.6% | +68.8% |
| 2025 | +20.8% | +128.0% |
| 2026 | +17.7% | +87.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and TSEM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and TSEM?
The QQQ/TSEM correlation stands at 0.42 on a 3-year window (1 year: 0.25, 5 years: 0.34), computed from weekly returns as of 2026-08-27.
Is TSEM a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.42 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.
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Related comparisons
Hubs: QQQ correlations · TSEM correlations
