AFRM vs ARKK: Correlation
How closely do Affirm Holdings, Inc. (AFRM) and ARK Innovation ETF (ARKK) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AFRM and ARKK?
Across a 3-year window, the weekly returns of AFRM and ARKK correlate at 0.62, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 1808.2 %².
ARKK is one of the assets that tracks AFRM most closely: it ranks #1 out of the 17 assets we track against AFRM. The last year tells two different stories: ARKK led by 15.8 percentage points, -0.1% for AFRM against +15.7% for ARKK. Note the risk asymmetry: AFRM runs 1.9 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.
AFRM vs ARKK: side by side
| AFRM (Affirm Holdings, Inc.) | ARKK (ARK Innovation ETF) | |
|---|---|---|
| 1-year return | -0.1% | +15.7% |
| 5-year return | -22.2% | -27.7% |
| Volatility (ann.) | 75.0% | 38.8% |
| Beta vs S&P 500 | 2.77 | 2.07 |
| Max drawdown (3Y) | -55.9% | -39.6% |
| Market cap | $26.0B | – |
| P/E (trailing) | 69.2 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | AFRM | ARKK |
|---|---|---|
| 2022 | -90.4% | -67.0% |
| 2023 | +408.2% | +69.0% |
| 2024 | +23.9% | +8.4% |
| 2025 | +22.2% | +35.5% |
| 2026 | +4.1% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AFRM and ARKK good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AFRM and ARKK?
The AFRM/ARKK correlation stands at 0.62 on a 3-year window (1 year: 0.63, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is ARKK a good diversifier for AFRM?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AFRM correlations · ARKK correlations
