DGZ vs XLRE: Correlation
DB Gold Short ETN due February 15, 2038 (DGZ) and Real Estate Select Sector SPDR Fund (XLRE) show a negative relationship: their 3-year correlation of weekly returns is -0.17.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGZ and XLRE?
On 3 years of weekly data the DGZ/XLRE correlation comes out at -0.17, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.20 lands near the 3-year figure. The 5-year figure is -0.19, and annualized covariance runs at -80.3 %².
Among the 156 assets we track against DGZ, XLRE ranks #19 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLRE outperformed by 36.1 percentage points (-26.6% for DGZ against +9.5% for XLRE). Note the risk asymmetry: DGZ runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
DGZ vs XLRE: side by side
| DGZ (DB Gold Short ETN due February 15, 2038) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -26.6% | +9.5% |
| 5-year return | -50.3% | +11.4% |
| Volatility (ann.) | 28.3% | 16.7% |
| Beta vs S&P 500 | -0.18 | 0.57 |
| Max drawdown (3Y) | -59.5% | -16.6% |
| Dividend yield | – | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Year-by-year returns
| Year | DGZ | XLRE |
|---|---|---|
| 2022 | +4.9% | -26.2% |
| 2023 | -4.7% | +12.4% |
| 2024 | -16.5% | +5.1% |
| 2025 | -32.5% | +2.6% |
| 2026 | -10.0% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGZ and XLRE good diversifiers for each other?
Yes. With a correlation of -0.17, DGZ and XLRE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between DGZ and XLRE?
Using weekly returns as of 2026-08-27: -0.17 over 3 years, with -0.20 over the last year and -0.19 over 5 years.
Is XLRE a good diversifier for DGZ?
Yes. With a correlation of -0.17, DGZ and XLRE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.17 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/dgz-vs-xlre.json
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Related comparisons
Hubs: DGZ correlations · XLRE correlations
