ALRM vs QTWO: Correlation
Alarm.com Holdings, Inc. (ALRM) and Q2 Holdings, Inc. (QTWO) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and QTWO?
On 3 years of weekly data the ALRM/QTWO correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 659.2 %².
By 3-year correlation, QTWO places #5 of the 17 assets tracked against ALRM. On 12-month performance ALRM holds a 14.4-point edge, -1.6% against -16.0%.
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 QTWO: side by side
| ALRM (Alarm.com Holdings, Inc.) | QTWO (Q2 Holdings, Inc.) | |
|---|---|---|
| 1-year return | -1.6% | -16.0% |
| 5-year return | -30.9% | -24.7% |
| Volatility (ann.) | 28.1% | 41.9% |
| Beta vs S&P 500 | 0.96 | 1.41 |
| Max drawdown (3Y) | -44.3% | -62.0% |
| Market cap | $2.8B | $4.1B |
| P/E (trailing) | 25.5 | 45.9 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | QTWO |
|---|---|---|
| 2022 | -41.7% | -66.2% |
| 2023 | +30.6% | +61.6% |
| 2024 | -5.9% | +131.9% |
| 2025 | -16.1% | -28.3% |
| 2026 | +12.9% | -9.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and QTWO 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 QTWO?
As of 2026-08-27, the correlation of weekly returns between ALRM and QTWO is 0.56 over 3 years, 0.61 over 1 year and 0.57 over 5 years.
Is QTWO 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?
On the −1 to +1 scale, 0.56 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-qtwo.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/alrm-vs-qtwo/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ALRM correlations · QTWO correlations
