ALRM vs VXZ: Correlation
Measured on weekly returns over the past three years, Alarm.com Holdings, Inc. (ALRM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.45, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALRM and VXZ?
On 3 years of weekly data the ALRM/VXZ correlation comes out at -0.45, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.35) than the 3-year average (-0.45). The 5-year figure is -0.43, and annualized covariance runs at -322.3 %².
VXZ is close to the least connected end of ALRM's tracked universe, ranking #17 of 17. On 12-month performance ALRM holds a 14.5-point edge, -1.6% against -16.1%.
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 VXZ: side by side
| ALRM (Alarm.com Holdings, Inc.) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -1.6% | -16.1% |
| 5-year return | -30.9% | -53.1% |
| Volatility (ann.) | 28.1% | 25.6% |
| Beta vs S&P 500 | 0.96 | -1.31 |
| Max drawdown (3Y) | -44.3% | -36.4% |
| Market cap | $2.8B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALRM | VXZ |
|---|---|---|
| 2022 | -41.7% | +0.5% |
| 2023 | +30.6% | -44.0% |
| 2024 | -5.9% | -12.7% |
| 2025 | -16.1% | +5.7% |
| 2026 | +12.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALRM and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.45 means the two rarely move for the same reasons.
FAQ
What is the correlation between ALRM and VXZ?
As of 2026-08-27, the correlation of weekly returns between ALRM and VXZ is -0.45 over 3 years, -0.35 over 1 year and -0.43 over 5 years.
Is VXZ a good diversifier for ALRM?
By historical standards, yes. A correlation of -0.45 means the two rarely move for the same reasons.
What does a correlation of -0.45 mean?
A reading of -0.45 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
$ curl https://www.pairbook.io/api/v1/pairs/alrm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alrm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ALRM correlations · VXZ correlations
