QQQ vs XYL: Correlation
How closely do Invesco QQQ Trust (QQQ) and Xylem Inc. (XYL) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and XYL?
Across a 3-year window, the weekly returns of QQQ and XYL correlate at 0.48, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.18 versus 0.48 over 3 years. Stretching to 5 years gives 0.52, with an annualized covariance of 225.8 %².
By 3-year correlation, XYL places #338 of the 4755 assets tracked against QQQ. The last year tells two different stories: QQQ led by 47.4 percentage points, +26.3% for QQQ against -21.1% for XYL. This link changes with the market regime, having swung between 0.07 and 0.70 on a rolling one-year basis.
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 XYL: side by side
| QQQ (Invesco QQQ Trust) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -21.1% |
| 5-year return | +95.4% | -12.5% |
| Volatility (ann.) | 19.6% | 23.9% |
| Beta vs S&P 500 | 1.28 | 0.96 |
| Max drawdown (3Y) | -22.8% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 0.44% | 1.47% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | Industrials |
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 | XYL |
|---|---|---|
| 2022 | -32.6% | -6.6% |
| 2023 | +54.9% | +4.8% |
| 2024 | +25.6% | +2.6% |
| 2025 | +20.8% | +18.8% |
| 2026 | +17.7% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and XYL good diversifiers for each other?
Reasonably. At 0.48, QQQ and XYL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between QQQ and XYL?
As of 2026-08-27, the correlation of weekly returns between QQQ and XYL is 0.48 over 3 years, 0.18 over 1 year and 0.52 over 5 years.
Is XYL a good diversifier for QQQ?
Reasonably. At 0.48, QQQ and XYL keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 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
$ curl https://www.pairbook.io/api/v1/pairs/qqq-vs-xyl.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/qqq-vs-xyl/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QQQ correlations · XYL correlations
