ALRM vs IWM: Correlation
How closely do Alarm.com Holdings, Inc. (ALRM) and iShares Russell 2000 ETF (IWM) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and IWM?
On 3 years of weekly data the ALRM/IWM correlation comes out at 0.56, moderate. The link has loosened recently: the 1-year correlation (0.34) runs below the 3-year figure (0.56). The 5-year figure is 0.55, and annualized covariance runs at 313.4 %².
By 3-year correlation, IWM places #4 of the 17 assets tracked against ALRM. Correlation aside, the last 12 months split them widely, with IWM ahead by 30.0 points (-1.6% versus +28.4%).
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 IWM: side by side
| ALRM (Alarm.com Holdings, Inc.) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | -1.6% | +28.4% |
| 5-year return | -30.9% | +41.5% |
| Volatility (ann.) | 28.1% | 19.8% |
| Beta vs S&P 500 | 0.96 | 1.06 |
| Max drawdown (3Y) | -44.3% | -27.5% |
| Market cap | $2.8B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | 0.91% |
| Expense ratio | – | 0.19% |
| Assets under management | – | $80.1B |
| Sector / category | US Listed | ETF · US Small & Mid Cap |
IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | ALRM | IWM |
|---|---|---|
| 2022 | -41.7% | -20.5% |
| 2023 | +30.6% | +16.8% |
| 2024 | -5.9% | +11.4% |
| 2025 | -16.1% | +12.7% |
| 2026 | +12.9% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IWM holds ALRM at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ALRM and IWM good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ALRM and IWM?
The ALRM/IWM correlation stands at 0.56 on a 3-year window (1 year: 0.34, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is IWM a good diversifier for ALRM?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
A reading of 0.56 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-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alrm-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ALRM correlations · IWM correlations
