ESS vs NXRT: Correlation
How closely do Essex Property Trust (ESS) and NexPoint Residential Trust, Inc. (NXRT) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and NXRT?
Over the past 3 years, ESS and NXRT moved with a correlation of 0.73, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.55 versus 0.73 over 3 years. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 476.1 %².
Among the 31 assets we track against ESS, NXRT ranks #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ESS outperformed by 34.0 percentage points (+9.1% for ESS against -24.9% for NXRT).
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 NXRT: side by side
| ESS (Essex Property Trust) | NXRT (NexPoint Residential Trust, Inc.) | |
|---|---|---|
| 1-year return | +9.1% | -24.9% |
| 5-year return | +3.0% | -54.1% |
| Volatility (ann.) | 22.2% | 29.2% |
| Beta vs S&P 500 | 0.64 | 0.83 |
| Max drawdown (3Y) | -20.8% | -45.0% |
| Market cap | $19.4B | $1.2B |
| P/E (trailing) | 44.8 | – |
| Dividend yield | 3.58% | 8.67% |
| Sector / category | Real Estate | US Listed |
Year-by-year returns
| Year | ESS | NXRT |
|---|---|---|
| 2022 | -37.8% | -46.7% |
| 2023 | +22.0% | -17.3% |
| 2024 | +18.4% | +27.3% |
| 2025 | -5.0% | -23.3% |
| 2026 | +10.5% | -18.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESS and NXRT good diversifiers for each other?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ESS and NXRT?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.55 over the last year and 0.71 over 5 years.
Is NXRT a good diversifier for ESS?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.73 mean?
A reading of 0.73 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-nxrt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ess-vs-nxrt/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ESS correlations · NXRT correlations
