DLR vs XLRE: Correlation
Digital Realty (DLR) and Real Estate Select Sector SPDR Fund (XLRE) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DLR and XLRE?
On 3 years of weekly data the DLR/XLRE correlation comes out at 0.52, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.52 over 3. The 5-year figure is 0.67, and annualized covariance runs at 237.2 %².
XLRE is one of the assets that tracks DLR most closely: it ranks #3 out of the 30 assets we track against DLR. Over the last 12 months DLR came out ahead by 6.9 percentage points (+16.4% against +9.5%). The rolling one-year correlation moved between 0.44 and 0.78 over the past three years, a moderate range. 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 XLRE: side by side
| DLR (Digital Realty) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.4% | +9.5% |
| 5-year return | +40.3% | +11.4% |
| Volatility (ann.) | 27.1% | 16.7% |
| Beta vs S&P 500 | 0.73 | 0.57 |
| Max drawdown (3Y) | -29.4% | -16.6% |
| Market cap | $72.5B | – |
| P/E (trailing) | 94.2 | – |
| Dividend yield | 2.52% | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | Real Estate | 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 | DLR | XLRE |
|---|---|---|
| 2022 | -41.0% | -26.2% |
| 2023 | +39.9% | +12.4% |
| 2024 | +35.9% | +5.1% |
| 2025 | -10.1% | +2.6% |
| 2026 | +25.8% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLRE holds DLR at a 5.01% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DLR and XLRE good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DLR and XLRE?
As of 2026-08-27, the correlation of weekly returns between DLR and XLRE is 0.52 over 3 years, 0.51 over 1 year and 0.67 over 5 years.
Is XLRE a good diversifier for DLR?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 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/dlr-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dlr-vs-xlre/)
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Related comparisons
Hubs: DLR correlations · XLRE correlations
