ARKK vs RDDT: Correlation
Measured on weekly returns over the past three years, ARK Innovation ETF (ARKK) and Reddit (RDDT) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and RDDT?
Across a 3-year window, the weekly returns of ARKK and RDDT correlate at 0.52, moderate. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of 1499.9 %².
By 3-year correlation, RDDT places #56 of the 122 assets tracked against ARKK. Their recent paths diverged sharply: over the last 12 months ARKK outperformed by 42.8 percentage points (+15.7% for ARKK against -27.1% for RDDT). The rolling one-year correlation stayed in a tight band between 0.43 and 0.65 over the past three years, which points to a structural rather than episodic relationship. One caveat on sizing: RDDT is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 RDDT: side by side
| ARKK (ARK Innovation ETF) | RDDT (Reddit) | |
|---|---|---|
| 1-year return | +15.7% | -27.1% |
| 5-year return | -27.7% | n/a |
| Volatility (ann.) | 38.8% | 75.2% |
| Beta vs S&P 500 | 2.07 | 2.59 |
| Max drawdown (3Y) | -39.6% | -61.4% |
| Market cap | – | $29.6B |
| P/E (trailing) | – | 36.1 |
| Dividend yield | – | 0.00% |
| Sector / category | ETF · Thematic | Communication Services |
Year-by-year returns
| Year | ARKK | RDDT |
|---|---|---|
| 2022 | -67.0% | – |
| 2023 | +69.0% | – |
| 2024 | +8.4% | – |
| 2025 | +35.5% | +40.6% |
| 2026 | +13.6% | -33.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and RDDT good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARKK and RDDT?
The ARKK/RDDT correlation stands at 0.52 on a 3-year window (1 year: 0.60, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is RDDT a good diversifier for ARKK?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/arkk-vs-rddt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arkk-vs-rddt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARKK correlations · RDDT correlations
