O vs XLRE: Correlation
Measured on weekly returns over the past three years, Realty Income (O) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are O and XLRE?
Over the past 3 years, O and XLRE moved with a correlation of 0.74, which is strong. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 213.0 %².
Few assets follow O as closely as XLRE, which ranks #3 of 44 tracked partners. Neither side won the trailing year by much: +11.3% against +9.5%. The rolling one-year correlation stayed in a tight band between 0.63 and 0.87 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.
O vs XLRE: side by side
| O (Realty Income) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.3% | +9.5% |
| 5-year return | +14.5% | +11.4% |
| Volatility (ann.) | 17.3% | 16.7% |
| Beta vs S&P 500 | 0.21 | 0.57 |
| Max drawdown (3Y) | -19.3% | -16.6% |
| Market cap | $58.5B | – |
| P/E (trailing) | 45.4 | – |
| Dividend yield | 5.20% | 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 | O | XLRE |
|---|---|---|
| 2022 | -7.4% | -26.2% |
| 2023 | -4.5% | +12.4% |
| 2024 | -2.1% | +5.1% |
| 2025 | +12.2% | +2.6% |
| 2026 | +13.0% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
O represents 4.46% of XLRE's portfolio, so part of any move in XLRE is O itself, and the correlation between them is partly mechanical.
Are O and XLRE good diversifiers for each other?
To a limited degree. At 0.74 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 O and XLRE?
As of 2026-08-27, the correlation of weekly returns between O and XLRE is 0.74 over 3 years, 0.82 over 1 year and 0.75 over 5 years.
Is XLRE a good diversifier for O?
To a limited degree. At 0.74 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 0.74 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/o-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/o-vs-xlre/)
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Related comparisons
Hubs: O correlations · XLRE correlations
