FRT vs XLRE: Correlation
How closely do Federal Realty Investment Trust (FRT) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRT and XLRE?
Across a 3-year window, the weekly returns of FRT and XLRE correlate at 0.79, strong. Recent behaviour matches the longer record: 0.76 over 1 year against 0.79 over 3. Stretching to 5 years gives 0.76, with an annualized covariance of 256.0 %².
By 3-year correlation, XLRE places #8 of the 46 assets tracked against FRT. The trailing year gives FRT the advantage: +21.6% versus +9.5%, a 12.1-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.73 through 0.85.
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.
FRT vs XLRE: side by side
| FRT (Federal Realty Investment Trust) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.6% | +9.5% |
| 5-year return | +18.8% | +11.4% |
| Volatility (ann.) | 19.5% | 16.7% |
| Beta vs S&P 500 | 0.53 | 0.57 |
| Max drawdown (3Y) | -27.4% | -16.6% |
| Market cap | $10.2B | – |
| P/E (trailing) | 23.6 | – |
| Dividend yield | 3.84% | 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 | FRT | XLRE |
|---|---|---|
| 2022 | -22.7% | -26.2% |
| 2023 | +6.6% | +12.4% |
| 2024 | +12.1% | +5.1% |
| 2025 | -5.9% | +2.6% |
| 2026 | +19.7% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLRE holds FRT at a 0.93% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are FRT and XLRE good diversifiers for each other?
Only partially. A correlation of 0.79 means FRT and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between FRT and XLRE?
As of 2026-08-27, the correlation of weekly returns between FRT and XLRE is 0.79 over 3 years, 0.76 over 1 year and 0.76 over 5 years.
Is XLRE a good diversifier for FRT?
Only partially. A correlation of 0.79 means FRT and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.79 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/frt-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/frt-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FRT correlations · XLRE correlations
