DHC vs VNQ: Correlation
Measured on weekly returns over the past three years, Diversified Healthcare Trust (DHC) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHC and VNQ?
On 3 years of weekly data the DHC/VNQ correlation comes out at 0.44, moderate. Little has changed lately, as the 1-year reading of 0.52 lands near the 3-year figure. The 5-year figure is 0.37, and annualized covariance runs at 414.2 %².
Among the 11 assets we track against DHC, VNQ ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months DHC outperformed by 97.6 percentage points (+107.9% for DHC against +10.3% for VNQ). Note the risk asymmetry: DHC runs 3.5 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.
DHC vs VNQ: side by side
| DHC (Diversified Healthcare Trust) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +107.9% | +10.3% |
| 5-year return | +129.1% | +9.5% |
| Volatility (ann.) | 57.3% | 16.6% |
| Beta vs S&P 500 | 0.54 | 0.59 |
| Max drawdown (3Y) | -51.2% | -17.5% |
| Market cap | $1.9B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.50% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | US Listed | ETF · Real Estate |
VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Year-by-year returns
| Year | DHC | VNQ |
|---|---|---|
| 2022 | -78.5% | -26.3% |
| 2023 | +494.7% | +11.9% |
| 2024 | -37.6% | +4.8% |
| 2025 | +113.9% | +3.2% |
| 2026 | +62.5% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VNQ holds DHC at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DHC and VNQ good diversifiers for each other?
Reasonably. At 0.44, DHC and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DHC and VNQ?
The DHC/VNQ correlation stands at 0.44 on a 3-year window (1 year: 0.52, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for DHC?
Reasonably. At 0.44, DHC and VNQ keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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
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Related comparisons
Hubs: DHC correlations · VNQ correlations
