ESS vs VELO: Correlation
How closely do Essex Property Trust (ESS) and Velo3D, Inc. (VELO) trade together? Their weekly returns over three years give a correlation of -0.21, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and VELO?
Across a 3-year window, the weekly returns of ESS and VELO correlate at -0.21, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.07) than the 3-year average (-0.21). Stretching to 5 years gives -0.08, with an annualized covariance of -1157.9 %².
VELO is close to the least connected end of ESS's tracked universe, ranking #27 of 31. Their recent paths diverged sharply: over the last 12 months VELO outperformed by 172.8 percentage points (+9.1% for ESS against +181.9% for VELO). Note the risk asymmetry: VELO runs 11.2 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.
ESS vs VELO: side by side
| ESS (Essex Property Trust) | VELO (Velo3D, Inc.) | |
|---|---|---|
| 1-year return | +9.1% | +181.9% |
| 5-year return | +3.0% | -99.8% |
| Volatility (ann.) | 22.2% | 249.0% |
| Beta vs S&P 500 | 0.64 | -2.66 |
| Max drawdown (3Y) | -20.8% | -99.8% |
| Market cap | $19.4B | $0.4B |
| P/E (trailing) | 44.8 | – |
| Dividend yield | 3.58% | 0.00% |
| Sector / category | Real Estate | US Listed |
Year-by-year returns
| Year | ESS | VELO |
|---|---|---|
| 2022 | -37.8% | -77.1% |
| 2023 | +22.0% | -77.8% |
| 2024 | +18.4% | -95.2% |
| 2025 | -5.0% | +35.7% |
| 2026 | +10.5% | -6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESS and VELO good diversifiers for each other?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ESS and VELO?
As of 2026-08-27, the correlation of weekly returns between ESS and VELO is -0.21 over 3 years, -0.07 over 1 year and -0.08 over 5 years.
Is VELO a good diversifier for ESS?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.21 mean?
On the −1 to +1 scale, -0.21 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ess-vs-velo.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ess-vs-velo/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ESS correlations · VELO correlations
