ESS vs SPY: Correlation
Essex Property Trust (ESS) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.41.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and SPY?
On 3 years of weekly data the ESS/SPY correlation comes out at 0.41, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.05 versus 0.41 over 3 years. The 5-year figure is 0.49, and annualized covariance runs at 132.9 %².
Within ESS's tracked universe of 31 assets, SPY comes in at #19 by 3-year correlation. The trailing year gives SPY the advantage: +9.1% versus +20.6%, a 11.5-point spread. This link changes with the market regime, having swung between 0.06 and 0.65 on a rolling one-year basis. Risk is not evenly split, since ESS carries 1.5 times the volatility of the other side.
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 SPY: side by side
| ESS (Essex Property Trust) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +9.1% | +20.6% |
| 5-year return | +3.0% | +82.4% |
| Volatility (ann.) | 22.2% | 14.5% |
| Beta vs S&P 500 | 0.64 | 1.00 |
| Max drawdown (3Y) | -20.8% | -18.8% |
| Market cap | $19.4B | – |
| P/E (trailing) | 44.8 | – |
| Dividend yield | 3.58% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Real Estate | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ESS | SPY |
|---|---|---|
| 2022 | -37.8% | -18.2% |
| 2023 | +22.0% | +26.2% |
| 2024 | +18.4% | +24.9% |
| 2025 | -5.0% | +17.7% |
| 2026 | +10.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESS and SPY good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ESS and SPY?
Using weekly returns as of 2026-08-27: 0.41 over 3 years, with 0.05 over the last year and 0.49 over 5 years.
Is SPY a good diversifier for ESS?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
A reading of 0.41 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ESS correlations · SPY correlations
