ARKK vs TEM: Correlation
ARK Innovation ETF (ARKK) and Tempus AI, Inc. (TEM) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and TEM?
On 3 years of weekly data the ARKK/TEM correlation comes out at 0.62, strong. The link has tightened recently: the 1-year correlation (0.74) runs above the 3-year figure (0.62). The 5-year figure is n/a, and annualized covariance runs at 2520.0 %².
Within ARKK's tracked universe of 122 assets, TEM comes in at #31 by 3-year correlation. The last year tells two different stories: ARKK led by 19.2 percentage points, +15.7% for ARKK against -3.5% for TEM. One caveat on sizing: TEM is 2.7 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 TEM: side by side
| ARKK (ARK Innovation ETF) | TEM (Tempus AI, Inc.) | |
|---|---|---|
| 1-year return | +15.7% | -3.5% |
| 5-year return | -27.7% | n/a |
| Volatility (ann.) | 38.8% | 104.7% |
| Beta vs S&P 500 | 2.07 | 3.25 |
| Max drawdown (3Y) | -39.6% | -59.8% |
| Market cap | – | $12.8B |
| P/E (trailing) | – | – |
| Dividend yield | – | 0.00% |
| Sector / category | ETF · Thematic | US Listed |
Year-by-year returns
| Year | ARKK | TEM |
|---|---|---|
| 2022 | -67.0% | – |
| 2023 | +69.0% | – |
| 2024 | +8.4% | – |
| 2025 | +35.5% | +74.9% |
| 2026 | +13.6% | +19.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and TEM good diversifiers for each other?
Only partially. A correlation of 0.62 means ARKK and TEM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ARKK and TEM?
As of 2026-08-27, the correlation of weekly returns between ARKK and TEM is 0.62 over 3 years, 0.74 over 1 year and n/a over 5 years.
Is TEM a good diversifier for ARKK?
Only partially. A correlation of 0.62 means ARKK and TEM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 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/arkk-vs-tem.json
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Related comparisons
Hubs: ARKK correlations · TEM correlations
