ARKK vs ARLO: Correlation
Measured on weekly returns over the past three years, ARK Innovation ETF (ARKK) and Arlo Technologies, Inc. (ARLO) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and ARLO?
Over the past 3 years, ARKK and ARLO moved with a correlation of 0.49, which is moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 1170.3 %².
Within ARKK's tracked universe of 122 assets, ARLO comes in at #67 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ARKK outperformed by 41.4 percentage points (+15.7% for ARKK against -25.7% for ARLO). Note the risk asymmetry: ARLO runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ARKK vs ARLO: side by side
| ARKK (ARK Innovation ETF) | ARLO (Arlo Technologies, Inc.) | |
|---|---|---|
| 1-year return | +15.7% | -25.7% |
| 5-year return | -27.7% | +113.6% |
| Volatility (ann.) | 38.8% | 61.4% |
| Beta vs S&P 500 | 2.07 | 1.84 |
| Max drawdown (3Y) | -39.6% | -50.8% |
| Market cap | – | $1.4B |
| P/E (trailing) | – | 46.7 |
| Dividend yield | – | 0.00% |
| Sector / category | ETF · Thematic | US Listed |
Year-by-year returns
| Year | ARKK | ARLO |
|---|---|---|
| 2022 | -67.0% | -66.5% |
| 2023 | +69.0% | +171.2% |
| 2024 | +8.4% | +17.5% |
| 2025 | +35.5% | +25.0% |
| 2026 | +13.6% | -6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and ARLO good diversifiers for each other?
Reasonably. At 0.49, ARKK and ARLO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ARKK and ARLO?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.48 over the last year and 0.34 over 5 years.
Is ARLO a good diversifier for ARKK?
Reasonably. At 0.49, ARKK and ARLO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ARKK correlations · ARLO correlations
