ALRM vs FNGD: Correlation
Alarm.com Holdings, Inc. (ALRM) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) show a negative relationship: their 3-year correlation of weekly returns is -0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and FNGD?
Across a 3-year window, the weekly returns of ALRM and FNGD correlate at -0.41, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.32) sits close to the 3-year figure. Stretching to 5 years gives -0.46, with an annualized covariance of -881.2 %².
Out of 17 assets tracked against ALRM, FNGD lands near the bottom at #15. The last year tells two different stories: ALRM led by 54.1 percentage points, -1.6% for ALRM against -55.7% for FNGD. Note the risk asymmetry: FNGD 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.
ALRM vs FNGD: side by side
| ALRM (Alarm.com Holdings, Inc.) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | -1.6% | -55.7% |
| 5-year return | -30.9% | -99.4% |
| Volatility (ann.) | 28.1% | 75.7% |
| Beta vs S&P 500 | 0.96 | -4.54 |
| Max drawdown (3Y) | -44.3% | -97.6% |
| Market cap | $2.8B | – |
| P/E (trailing) | 25.5 | 20.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | FNGD |
|---|---|---|
| 2022 | -41.7% | +52.2% |
| 2023 | +30.6% | -90.1% |
| 2024 | -5.9% | -76.6% |
| 2025 | -16.1% | -61.4% |
| 2026 | +12.9% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and FNGD good diversifiers for each other?
Yes. With a correlation of -0.41, ALRM and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ALRM and FNGD?
As of 2026-08-27, the correlation of weekly returns between ALRM and FNGD is -0.41 over 3 years, -0.32 over 1 year and -0.46 over 5 years.
Is FNGD a good diversifier for ALRM?
Yes. With a correlation of -0.41, ALRM and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.41 mean?
A reading of -0.41 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/alrm-vs-fngd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/alrm-vs-fngd/)
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Related comparisons
Hubs: ALRM correlations · FNGD correlations
