REG vs XLRE: Correlation
Measured on weekly returns over the past three years, Regency Centers (REG) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are REG and XLRE?
Over the past 3 years, REG and XLRE moved with a correlation of 0.78, which is strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 233.1 %².
Within REG's tracked universe of 41 assets, XLRE comes in at #7 by 3-year correlation. Twelve-month performance is nearly a tie, at +8.4% for REG and +9.5% for XLRE. The link looks structural: the rolling one-year correlation barely moved, holding between 0.71 and 0.83.
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.
REG vs XLRE: side by side
| REG (Regency Centers) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.4% | +9.5% |
| 5-year return | +35.2% | +11.4% |
| Volatility (ann.) | 17.8% | 16.7% |
| Beta vs S&P 500 | 0.34 | 0.57 |
| Max drawdown (3Y) | -15.1% | -16.6% |
| Market cap | $14.1B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 3.89% | 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 | REG | XLRE |
|---|---|---|
| 2022 | -13.6% | -26.2% |
| 2023 | +11.9% | +12.4% |
| 2024 | +14.9% | +5.1% |
| 2025 | -2.8% | +2.6% |
| 2026 | +11.4% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.27% of XLRE is REG itself, so the fund partly moves with the stock by construction.
Are REG and XLRE good diversifiers for each other?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between REG and XLRE?
The REG/XLRE correlation stands at 0.78 on a 3-year window (1 year: 0.76, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for REG?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.78 mean?
On the −1 to +1 scale, 0.78 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/reg-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: REG correlations · XLRE correlations
