ESS vs IRT: Correlation
Essex Property Trust (ESS) and Independence Realty Trust, Inc. (IRT) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and IRT?
Across a 3-year window, the weekly returns of ESS and IRT correlate at 0.78, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.78 over 3. Stretching to 5 years gives 0.76, with an annualized covariance of 432.1 %².
Within ESS's tracked universe of 31 assets, IRT comes in at #5 by 3-year correlation. On 12-month performance ESS holds a 12.6-point edge, +9.1% against -3.5%.
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.
ESS vs IRT: side by side
| ESS (Essex Property Trust) | IRT (Independence Realty Trust, Inc.) | |
|---|---|---|
| 1-year return | +9.1% | -3.5% |
| 5-year return | +3.0% | -4.5% |
| Volatility (ann.) | 22.2% | 24.8% |
| Beta vs S&P 500 | 0.64 | 0.74 |
| Max drawdown (3Y) | -20.8% | -29.0% |
| Market cap | $19.4B | $4.0B |
| P/E (trailing) | 44.8 | 91.1 |
| Dividend yield | 3.58% | 4.15% |
| Sector / category | Real Estate | US Listed |
Year-by-year returns
| Year | ESS | IRT |
|---|---|---|
| 2022 | -37.8% | -32.3% |
| 2023 | +22.0% | -5.6% |
| 2024 | +18.4% | +34.3% |
| 2025 | -5.0% | -8.5% |
| 2026 | +10.5% | -4.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESS and IRT good diversifiers for each other?
Only partially. A correlation of 0.78 means ESS and IRT 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 ESS and IRT?
Using weekly returns as of 2026-08-27: 0.78 over 3 years, with 0.74 over the last year and 0.76 over 5 years.
Is IRT a good diversifier for ESS?
Only partially. A correlation of 0.78 means ESS and IRT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.78 mean?
A reading of 0.78 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/ess-vs-irt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ess-vs-irt/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ESS correlations · IRT correlations
