DLR vs VNQ: Correlation
Digital Realty (DLR) and Vanguard Real Estate ETF (VNQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DLR and VNQ?
Across a 3-year window, the weekly returns of DLR and VNQ correlate at 0.49, moderate. Little has changed lately, as the 1-year reading of 0.46 lands near the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 219.5 %².
By 3-year correlation, VNQ places #6 of the 30 assets tracked against DLR. On 12-month performance DLR holds a 6.1-point edge, +16.4% against +10.3%. Across three years, the rolling one-year figure varied moderately, from 0.40 to 0.77. Note the risk asymmetry: DLR runs 1.6 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.
DLR vs VNQ: side by side
| DLR (Digital Realty) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +16.4% | +10.3% |
| 5-year return | +40.3% | +9.5% |
| Volatility (ann.) | 27.1% | 16.6% |
| Beta vs S&P 500 | 0.73 | 0.59 |
| Max drawdown (3Y) | -29.4% | -17.5% |
| Market cap | $72.5B | – |
| P/E (trailing) | 94.2 | – |
| Dividend yield | 2.52% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | Real Estate | 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 | DLR | VNQ |
|---|---|---|
| 2022 | -41.0% | -26.3% |
| 2023 | +39.9% | +11.9% |
| 2024 | +35.9% | +4.8% |
| 2025 | -10.1% | +3.2% |
| 2026 | +25.8% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.38% of VNQ is DLR itself, so the fund partly moves with the stock by construction.
Are DLR and VNQ good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between DLR and VNQ?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.46 over the last year and 0.63 over 5 years.
Is VNQ a good diversifier for DLR?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 mean?
A reading of 0.49 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dlr-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dlr-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DLR correlations · VNQ correlations
