ESS vs XLRE: Correlation
Essex Property Trust (ESS) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESS and XLRE?
Over the past 3 years, ESS and XLRE moved with a correlation of 0.73, which is strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 272.2 %².
Within ESS's tracked universe of 31 assets, XLRE comes in at #9 by 3-year correlation. Neither side won the trailing year by much: +9.1% against +9.5%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.84.
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 XLRE: side by side
| ESS (Essex Property Trust) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.1% | +9.5% |
| 5-year return | +3.0% | +11.4% |
| Volatility (ann.) | 22.2% | 16.7% |
| Beta vs S&P 500 | 0.64 | 0.57 |
| Max drawdown (3Y) | -20.8% | -16.6% |
| Market cap | $19.4B | – |
| P/E (trailing) | 44.8 | – |
| Dividend yield | 3.58% | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | Real Estate | Sector ETF |
On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Year-by-year returns
| Year | ESS | XLRE |
|---|---|---|
| 2022 | -37.8% | -26.2% |
| 2023 | +22.0% | +12.4% |
| 2024 | +18.4% | +5.1% |
| 2025 | -5.0% | +2.6% |
| 2026 | +10.5% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.87% of XLRE is ESS itself, so the fund partly moves with the stock by construction.
Are ESS and XLRE good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ESS and XLRE?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.68 over the last year and 0.75 over 5 years.
Is XLRE a good diversifier for ESS?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
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-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ess-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ESS correlations · XLRE correlations
