ALRM vs STRA: Correlation
Alarm.com Holdings, Inc. (ALRM) and Strategic Education, Inc. (STRA) show a moderate relationship: their 3-year correlation of weekly returns is 0.47.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and STRA?
Across a 3-year window, the weekly returns of ALRM and STRA correlate at 0.47, moderate. Little has changed lately, as the 1-year reading of 0.47 lands near the 3-year figure. Stretching to 5 years gives 0.30, with an annualized covariance of 459.2 %².
Within ALRM's tracked universe of 17 assets, STRA comes in at #11 by 3-year correlation. The trailing year gives STRA the advantage: -1.6% versus +8.1%, a 9.7-point spread.
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 STRA: side by side
| ALRM (Alarm.com Holdings, Inc.) | STRA (Strategic Education, Inc.) | |
|---|---|---|
| 1-year return | -1.6% | +8.1% |
| 5-year return | -30.9% | +27.6% |
| Volatility (ann.) | 28.1% | 34.7% |
| Beta vs S&P 500 | 0.96 | 0.80 |
| Max drawdown (3Y) | -44.3% | -38.1% |
| Market cap | $2.8B | $1.9B |
| P/E (trailing) | 25.5 | 14.2 |
| Dividend yield | 0.00% | 2.81% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | STRA |
|---|---|---|
| 2022 | -41.7% | +40.4% |
| 2023 | +30.6% | +21.4% |
| 2024 | -5.9% | +3.5% |
| 2025 | -16.1% | -11.6% |
| 2026 | +12.9% | +8.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and STRA good diversifiers for each other?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ALRM and STRA?
As of 2026-08-27, the correlation of weekly returns between ALRM and STRA is 0.47 over 3 years, 0.47 over 1 year and 0.30 over 5 years.
Is STRA a good diversifier for ALRM?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.47 mean?
On the −1 to +1 scale, 0.47 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-stra.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alrm-vs-stra/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ALRM correlations · STRA correlations
