INVH vs XLRE: Correlation
Measured on weekly returns over the past three years, Invitation Homes (INVH) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are INVH and XLRE?
On 3 years of weekly data the INVH/XLRE correlation comes out at 0.73, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. The 5-year figure is 0.77, and annualized covariance runs at 257.9 %².
Among the 28 assets we track against INVH, XLRE ranks #6 by 3-year correlation. The trailing year gives XLRE the advantage: -1.9% versus +9.5%, a 11.4-point spread. The rolling one-year correlation stayed in a tight band between 0.64 and 0.85 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.
INVH vs XLRE: side by side
| INVH (Invitation Homes) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -1.9% | +9.5% |
| 5-year return | -16.8% | +11.4% |
| Volatility (ann.) | 21.2% | 16.7% |
| Beta vs S&P 500 | 0.50 | 0.57 |
| Max drawdown (3Y) | -30.9% | -16.6% |
| Market cap | $17.4B | – |
| P/E (trailing) | 27.3 | – |
| Dividend yield | 3.98% | 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 | INVH | XLRE |
|---|---|---|
| 2022 | -33.0% | -26.2% |
| 2023 | +19.7% | +12.4% |
| 2024 | -3.1% | +5.1% |
| 2025 | -9.7% | +2.6% |
| 2026 | +7.6% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.65% of XLRE is INVH itself, so the fund partly moves with the stock by construction.
Are INVH and XLRE good diversifiers for each other?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between INVH and XLRE?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.66 over the last year and 0.77 over 5 years.
Is XLRE a good diversifier for INVH?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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/invh-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/invh-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: INVH correlations · XLRE correlations
