ARE vs CSGP: Correlation
How closely do Alexandria Real Estate Equities (ARE) and CoStar Group (CSGP) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARE and CSGP?
Across a 3-year window, the weekly returns of ARE and CSGP correlate at 0.38, moderate. The relationship has been stable: the 1-year correlation (0.33) sits close to the 3-year figure. Stretching to 5 years gives 0.42, with an annualized covariance of 531.5 %².
Among the 34 assets we track against ARE, CSGP ranks #21 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ARE outperformed by 32.9 percentage points (-32.1% for ARE against -65.0% for CSGP). On a rolling one-year basis the correlation drifted between 0.22 and 0.62, a moderate band.
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.
ARE vs CSGP: side by side
| ARE (Alexandria Real Estate Equities) | CSGP (CoStar Group) | |
|---|---|---|
| 1-year return | -32.1% | -65.0% |
| 5-year return | -68.3% | -62.7% |
| Volatility (ann.) | 38.3% | 36.5% |
| Beta vs S&P 500 | 0.91 | 0.86 |
| Max drawdown (3Y) | -65.6% | -72.2% |
| Market cap | $9.0B | $12.7B |
| P/E (trailing) | – | 174.1 |
| Dividend yield | 6.57% | 0.00% |
| Sector / category | Real Estate | Real Estate |
Year-by-year returns
| Year | ARE | CSGP |
|---|---|---|
| 2022 | -32.6% | -2.2% |
| 2023 | -9.1% | +13.1% |
| 2024 | -19.4% | -18.1% |
| 2025 | -46.6% | -6.1% |
| 2026 | +9.9% | -53.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARE and CSGP good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ARE and CSGP?
The ARE/CSGP correlation stands at 0.38 on a 3-year window (1 year: 0.33, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is CSGP a good diversifier for ARE?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.38 mean?
A reading of 0.38 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: ARE correlations · CSGP correlations
