O vs VNQ: Correlation
Measured on weekly returns over the past three years, Realty Income (O) and Vanguard Real Estate ETF (VNQ) 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 O and VNQ?
On 3 years of weekly data the O/VNQ correlation comes out at 0.73, strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. The 5-year figure is 0.76, and annualized covariance runs at 209.4 %².
Within O's tracked universe of 44 assets, VNQ comes in at #4 by 3-year correlation. Their 12-month results are close: +11.3% for O against +10.3% for VNQ. On a rolling one-year basis the correlation drifted between 0.61 and 0.87, a moderate band.
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.
O vs VNQ: side by side
| O (Realty Income) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +11.3% | +10.3% |
| 5-year return | +14.5% | +9.5% |
| Volatility (ann.) | 17.3% | 16.6% |
| Beta vs S&P 500 | 0.21 | 0.59 |
| Max drawdown (3Y) | -19.3% | -17.5% |
| Market cap | $58.5B | – |
| P/E (trailing) | 45.4 | – |
| Dividend yield | 5.20% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | Real Estate | 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 | O | VNQ |
|---|---|---|
| 2022 | -7.4% | -26.3% |
| 2023 | -4.5% | +11.9% |
| 2024 | -2.1% | +4.8% |
| 2025 | +12.2% | +3.2% |
| 2026 | +13.0% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
O represents 3.08% of VNQ's portfolio, so part of any move in VNQ is O itself, and the correlation between them is partly mechanical.
Are O and VNQ 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 O and VNQ?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.82 over the last year and 0.76 over 5 years.
Is VNQ a good diversifier for O?
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?
On the −1 to +1 scale, 0.73 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/o-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/o-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: O correlations · VNQ correlations
