ALRM vs QQQ: Correlation
How closely do Alarm.com Holdings, Inc. (ALRM) and Invesco QQQ Trust (QQQ) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and QQQ?
Across a 3-year window, the weekly returns of ALRM and QQQ correlate at 0.44, moderate. The link has loosened recently: the 1-year correlation (0.23) runs below the 3-year figure (0.44). Stretching to 5 years gives 0.49, with an annualized covariance of 239.5 %².
Among the 17 assets we track against ALRM, QQQ ranks #12 by 3-year correlation. Correlation aside, the last 12 months split them widely, with QQQ ahead by 27.9 points (-1.6% versus +26.3%).
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 QQQ: side by side
| ALRM (Alarm.com Holdings, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -1.6% | +26.3% |
| 5-year return | -30.9% | +95.4% |
| Volatility (ann.) | 28.1% | 19.6% |
| Beta vs S&P 500 | 0.96 | 1.28 |
| Max drawdown (3Y) | -44.3% | -22.8% |
| Market cap | $2.8B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | ALRM | QQQ |
|---|---|---|
| 2022 | -41.7% | -32.6% |
| 2023 | +30.6% | +54.9% |
| 2024 | -5.9% | +25.6% |
| 2025 | -16.1% | +20.8% |
| 2026 | +12.9% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and QQQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ALRM and QQQ?
The ALRM/QQQ correlation stands at 0.44 on a 3-year window (1 year: 0.23, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for ALRM?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
A reading of 0.44 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
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Related comparisons
Hubs: ALRM correlations · QQQ correlations
