IIPR vs VNQ: Correlation
How closely do Innovative Industrial Properties, Inc. (IIPR) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IIPR and VNQ?
Over the past 3 years, IIPR and VNQ moved with a correlation of 0.55, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.35 versus 0.55 over 3 years. Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 362.4 %².
Among the 19 assets we track against IIPR, VNQ ranks #4 by 3-year correlation. Neither side won the trailing year by much: +15.0% against +10.3%. Risk is not evenly split, since IIPR carries 2.4 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.
IIPR vs VNQ: side by side
| IIPR (Innovative Industrial Properties, Inc.) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +15.0% | +10.3% |
| 5-year return | -63.8% | +9.5% |
| Volatility (ann.) | 39.6% | 16.6% |
| Beta vs S&P 500 | 0.85 | 0.59 |
| Max drawdown (3Y) | -62.9% | -17.5% |
| Market cap | $1.6B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 13.32% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | US Listed | ETF · Real Estate |
VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Year-by-year returns
| Year | IIPR | VNQ |
|---|---|---|
| 2022 | -59.0% | -26.3% |
| 2023 | +8.8% | +11.9% |
| 2024 | -28.5% | +4.8% |
| 2025 | -18.4% | +3.2% |
| 2026 | +27.6% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.09% of VNQ is IIPR itself, so the fund partly moves with the stock by construction.
Are IIPR and VNQ good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IIPR and VNQ?
As of 2026-08-27, the correlation of weekly returns between IIPR and VNQ is 0.55 over 3 years, 0.35 over 1 year and 0.56 over 5 years.
Is VNQ a good diversifier for IIPR?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 mean?
A reading of 0.55 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/iipr-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iipr-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IIPR correlations · VNQ correlations
