PLD vs XLRE: Correlation
Measured on weekly returns over the past three years, Prologis (PLD) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.83, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PLD and XLRE?
On 3 years of weekly data the PLD/XLRE correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.74 over 1 year against 0.83 over 3. The 5-year figure is 0.86, and annualized covariance runs at 359.2 %².
Among the 40 assets we track against PLD, XLRE ranks #4 by 3-year correlation. The last year tells two different stories: PLD led by 20.5 percentage points, +30.0% for PLD against +9.5% for XLRE. The rolling one-year correlation stayed in a tight band between 0.75 and 0.91 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: PLD runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
PLD vs XLRE: side by side
| PLD (Prologis) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +30.0% | +9.5% |
| 5-year return | +22.5% | +11.4% |
| Volatility (ann.) | 25.8% | 16.7% |
| Beta vs S&P 500 | 0.90 | 0.57 |
| Max drawdown (3Y) | -31.4% | -16.6% |
| Market cap | $137.9B | – |
| P/E (trailing) | 31.7 | – |
| Dividend yield | 2.92% | 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 | PLD | XLRE |
|---|---|---|
| 2022 | -31.3% | -26.2% |
| 2023 | +21.6% | +12.4% |
| 2024 | -18.1% | +5.1% |
| 2025 | +25.1% | +2.6% |
| 2026 | +12.8% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PLD represents 9.06% of XLRE's portfolio, so part of any move in XLRE is PLD itself, and the correlation between them is partly mechanical.
Are PLD and XLRE good diversifiers for each other?
No. With a correlation of 0.83, PLD and XLRE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between PLD and XLRE?
As of 2026-08-27, the correlation of weekly returns between PLD and XLRE is 0.83 over 3 years, 0.74 over 1 year and 0.86 over 5 years.
Is XLRE a good diversifier for PLD?
No. With a correlation of 0.83, PLD and XLRE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.83 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/pld-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pld-vs-xlre/)
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Related comparisons
Hubs: PLD correlations · XLRE correlations
