ESS vs UDR: Correlation
Essex Property Trust (ESS) and UDR, Inc. (UDR) show a very strong relationship: their 3-year correlation of weekly returns is 0.88.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and UDR?
On 3 years of weekly data the ESS/UDR correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. The 5-year figure is 0.88, and annualized covariance runs at 412.4 %².
Few assets follow ESS as closely as UDR, which ranks #1 of 31 tracked partners. On 12-month performance ESS holds a 9.7-point edge, +9.1% against -0.6%. The rolling one-year correlation stayed in a tight band between 0.75 and 0.94 over the past three years, which points to a structural rather than episodic relationship.
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 UDR: side by side
| ESS (Essex Property Trust) | UDR (UDR, Inc.) | |
|---|---|---|
| 1-year return | +9.1% | -0.6% |
| 5-year return | +3.0% | -15.5% |
| Volatility (ann.) | 22.2% | 21.1% |
| Beta vs S&P 500 | 0.64 | 0.54 |
| Max drawdown (3Y) | -20.8% | -24.9% |
| Market cap | $19.4B | $13.6B |
| P/E (trailing) | 44.8 | 23.9 |
| Dividend yield | 3.58% | 4.56% |
| Sector / category | Real Estate | Real Estate |
Year-by-year returns
| Year | ESS | UDR |
|---|---|---|
| 2022 | -37.8% | -33.4% |
| 2023 | +22.0% | +3.1% |
| 2024 | +18.4% | +18.3% |
| 2025 | -5.0% | -11.8% |
| 2026 | +10.5% | +4.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESS and UDR good diversifiers for each other?
No. With a correlation of 0.88, ESS and UDR move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between ESS and UDR?
The ESS/UDR correlation stands at 0.88 on a 3-year window (1 year: 0.82, 5 years: 0.88), computed from weekly returns as of 2026-08-27.
Is UDR a good diversifier for ESS?
No. With a correlation of 0.88, ESS and UDR move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.88 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.
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Related comparisons
Hubs: ESS correlations · UDR correlations
