SAFE vs XLRE: Correlation
Safehold Inc. New (SAFE) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.68.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SAFE and XLRE?
On 3 years of weekly data the SAFE/XLRE correlation comes out at 0.68, strong. Recent behaviour matches the longer record: 0.59 over 1 year against 0.68 over 3. The 5-year figure is 0.57, and annualized covariance runs at 417.8 %².
Within SAFE's tracked universe of 13 assets, XLRE comes in at #5 by 3-year correlation. Over the last 12 months XLRE came out ahead by 9.6 percentage points (-0.1% against +9.5%). Risk is not evenly split, since SAFE carries 2.2 times the volatility of the other side.
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.
SAFE vs XLRE: side by side
| SAFE (Safehold Inc. New) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -0.1% | +9.5% |
| 5-year return | -85.5% | +11.4% |
| Volatility (ann.) | 36.8% | 16.7% |
| Beta vs S&P 500 | 0.66 | 0.57 |
| Max drawdown (3Y) | -51.9% | -16.6% |
| Market cap | $1.1B | – |
| P/E (trailing) | 9.5 | – |
| Dividend yield | 4.61% | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | US Listed | 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 | SAFE | XLRE |
|---|---|---|
| 2022 | -61.0% | -26.2% |
| 2023 | -48.4% | +12.4% |
| 2024 | -18.2% | +5.1% |
| 2025 | -22.5% | +2.6% |
| 2026 | +14.9% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SAFE and XLRE good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SAFE and XLRE?
The SAFE/XLRE correlation stands at 0.68 on a 3-year window (1 year: 0.59, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for SAFE?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
A reading of 0.68 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
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Related comparisons
Hubs: SAFE correlations · XLRE correlations
