ALRM vs PRCH: Correlation
Measured on weekly returns over the past three years, Alarm.com Holdings, Inc. (ALRM) and Porch Group, Inc. (PRCH) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and PRCH?
Over the past 3 years, ALRM and PRCH moved with a correlation of 0.49, which is moderate. Little has changed lately, as the 1-year reading of 0.44 lands near the 3-year figure. Over 5 years the correlation is 0.36, and the annualized covariance of weekly returns is 1624.7 %².
Within ALRM's tracked universe of 17 assets, PRCH comes in at #9 by 3-year correlation. The trailing year gives PRCH the advantage: -1.6% versus +7.2%, a 8.8-point spread. Risk is not evenly split, since PRCH carries 4.2 times the volatility of the other side.
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 PRCH: side by side
| ALRM (Alarm.com Holdings, Inc.) | PRCH (Porch Group, Inc.) | |
|---|---|---|
| 1-year return | -1.6% | +7.2% |
| 5-year return | -30.9% | -10.6% |
| Volatility (ann.) | 28.1% | 118.2% |
| Beta vs S&P 500 | 0.96 | 2.67 |
| Max drawdown (3Y) | -44.3% | -75.8% |
| Market cap | $2.8B | $2.0B |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | PRCH |
|---|---|---|
| 2022 | -41.7% | -87.9% |
| 2023 | +30.6% | +63.8% |
| 2024 | -5.9% | +59.7% |
| 2025 | -16.1% | +85.6% |
| 2026 | +12.9% | +91.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and PRCH good diversifiers for each other?
Reasonably. At 0.49, ALRM and PRCH keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ALRM and PRCH?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.44 over the last year and 0.36 over 5 years.
Is PRCH a good diversifier for ALRM?
Reasonably. At 0.49, ALRM and PRCH keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/alrm-vs-prch.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/alrm-vs-prch/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ALRM correlations · PRCH correlations
