NXDR vs RMT: Correlation
How closely do Nextdoor Holdings, Inc. (NXDR) and Royce Micro-Cap Trust, Inc. (RMT) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NXDR and RMT?
On 3 years of weekly data the NXDR/RMT correlation comes out at 0.47, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.36 versus 0.47 over 3 years. The 5-year figure is 0.45, and annualized covariance runs at 523.9 %².
Among the 15 assets we track against NXDR, RMT ranks #5 by 3-year correlation. The last year tells two different stories: RMT led by 38.4 percentage points, +10.0% for NXDR against +48.4% for RMT. One caveat on sizing: NXDR is 2.6 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.
NXDR vs RMT: side by side
| NXDR (Nextdoor Holdings, Inc.) | RMT (Royce Micro-Cap Trust, Inc.) | |
|---|---|---|
| 1-year return | +10.0% | +48.4% |
| 5-year return | -82.2% | +80.1% |
| Volatility (ann.) | 54.0% | 20.5% |
| Beta vs S&P 500 | 1.65 | 1.09 |
| Max drawdown (3Y) | -53.6% | -26.4% |
| Market cap | $0.9B | $0.8B |
| P/E (trailing) | – | 8.5 |
| Dividend yield | 0.00% | 5.57% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NXDR | RMT |
|---|---|---|
| 2022 | -73.9% | -16.8% |
| 2023 | -8.3% | +15.8% |
| 2024 | +25.4% | +14.0% |
| 2025 | -11.4% | +16.1% |
| 2026 | +10.5% | +39.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NXDR and RMT good diversifiers for each other?
Reasonably. At 0.47, NXDR and RMT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between NXDR and RMT?
The NXDR/RMT correlation stands at 0.47 on a 3-year window (1 year: 0.36, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is RMT a good diversifier for NXDR?
Reasonably. At 0.47, NXDR and RMT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.47 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.
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Related comparisons
Hubs: NXDR correlations · RMT correlations
