QQQ vs WDI: Correlation
Invesco QQQ Trust (QQQ) and Western Asset Diversified Income Fund (WDI) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and WDI?
On 3 years of weekly data the QQQ/WDI correlation comes out at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. The 5-year figure is 0.52, and annualized covariance runs at 110.1 %².
Among the 4755 assets we track against QQQ, WDI ranks #337 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 28.6 percentage points (+26.3% for QQQ against -2.3% for WDI). Note the risk asymmetry: QQQ runs 1.7 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 WDI: side by side
| QQQ (Invesco QQQ Trust) | WDI (Western Asset Diversified Income Fund) | |
|---|---|---|
| 1-year return | +26.3% | -2.3% |
| 5-year return | +95.4% | +14.7% |
| Volatility (ann.) | 19.6% | 11.7% |
| Beta vs S&P 500 | 1.28 | 0.46 |
| Max drawdown (3Y) | -22.8% | -14.1% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | 9.3 |
| 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 | WDI |
|---|---|---|
| 2022 | -32.6% | -23.3% |
| 2023 | +54.9% | +25.1% |
| 2024 | +25.6% | +13.9% |
| 2025 | +20.8% | +10.7% |
| 2026 | +17.7% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and WDI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between QQQ and WDI?
The QQQ/WDI correlation stands at 0.48 on a 3-year window (1 year: 0.48, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is WDI a good diversifier for QQQ?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 mean?
A reading of 0.48 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-wdi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qqq-vs-wdi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: QQQ correlations · WDI correlations
