ALRM vs VXX: Correlation
Alarm.com Holdings, Inc. (ALRM) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and VXX?
Across a 3-year window, the weekly returns of ALRM and VXX correlate at -0.42, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.22) runs above the 3-year figure (-0.42). Stretching to 5 years gives -0.39, with an annualized covariance of -723.0 %².
VXX is close to the least connected end of ALRM's tracked universe, ranking #16 of 17. Their recent paths diverged sharply: over the last 12 months ALRM outperformed by 48.1 percentage points (-1.6% for ALRM against -49.7% for VXX). Risk is not evenly split, since VXX carries 2.2 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 VXX: side by side
| ALRM (Alarm.com Holdings, Inc.) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | -1.6% | -49.7% |
| 5-year return | -30.9% | -95.6% |
| Volatility (ann.) | 28.1% | 60.9% |
| Beta vs S&P 500 | 0.96 | -3.31 |
| Max drawdown (3Y) | -44.3% | -83.3% |
| Market cap | $2.8B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | VXX |
|---|---|---|
| 2022 | -41.7% | -23.8% |
| 2023 | +30.6% | -72.5% |
| 2024 | -5.9% | -26.2% |
| 2025 | -16.1% | -42.2% |
| 2026 | +12.9% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and VXX good diversifiers for each other?
Yes. With a correlation of -0.42, ALRM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between ALRM and VXX?
As of 2026-08-27, the correlation of weekly returns between ALRM and VXX is -0.42 over 3 years, -0.22 over 1 year and -0.39 over 5 years.
Is VXX a good diversifier for ALRM?
Yes. With a correlation of -0.42, ALRM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.42 mean?
On the −1 to +1 scale, -0.42 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-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alrm-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ALRM correlations · VXX correlations
