ARE vs PDM: Correlation
Alexandria Real Estate Equities (ARE) and Piedmont Realty Trust, Inc. (PDM) 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 ARE and PDM?
Over the past 3 years, ARE and PDM moved with a correlation of 0.62, which is strong. Recent behaviour matches the longer record: 0.56 over 1 year against 0.62 over 3. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 836.8 %².
Within ARE's tracked universe of 34 assets, PDM comes in at #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months PDM outperformed by 48.1 percentage points (-32.1% for ARE against +16.0% for PDM).
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 PDM: side by side
| ARE (Alexandria Real Estate Equities) | PDM (Piedmont Realty Trust, Inc.) | |
|---|---|---|
| 1-year return | -32.1% | +16.0% |
| 5-year return | -68.3% | -29.9% |
| Volatility (ann.) | 38.3% | 35.3% |
| Beta vs S&P 500 | 0.91 | 0.95 |
| Max drawdown (3Y) | -65.6% | -46.4% |
| Market cap | $9.0B | $1.2B |
| P/E (trailing) | – | – |
| Dividend yield | 6.57% | 0.00% |
| Sector / category | Real Estate | US Listed |
Year-by-year returns
| Year | ARE | PDM |
|---|---|---|
| 2022 | -32.6% | -46.8% |
| 2023 | -9.1% | -14.8% |
| 2024 | -19.4% | +37.2% |
| 2025 | -46.6% | -7.3% |
| 2026 | +9.9% | +16.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARE and PDM good diversifiers for each other?
Only partially. A correlation of 0.62 means ARE and PDM 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 ARE and PDM?
The ARE/PDM correlation stands at 0.62 on a 3-year window (1 year: 0.56, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is PDM a good diversifier for ARE?
Only partially. A correlation of 0.62 means ARE and PDM 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?
A reading of 0.62 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 · PDM correlations
