UDR vs VNQ: Correlation
How closely do UDR, Inc. (UDR) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UDR and VNQ?
On 3 years of weekly data the UDR/VNQ correlation comes out at 0.72, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. The 5-year figure is 0.79, and annualized covariance runs at 249.7 %².
By 3-year correlation, VNQ places #9 of the 32 assets tracked against UDR. The trailing year gives VNQ the advantage: -0.6% versus +10.3%, a 10.9-point spread. The rolling one-year correlation stayed in a tight band between 0.61 and 0.85 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.
UDR vs VNQ: side by side
| UDR (UDR, Inc.) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | -0.6% | +10.3% |
| 5-year return | -15.5% | +9.5% |
| Volatility (ann.) | 21.1% | 16.6% |
| Beta vs S&P 500 | 0.54 | 0.59 |
| Max drawdown (3Y) | -24.9% | -17.5% |
| Market cap | $13.6B | – |
| P/E (trailing) | 23.9 | – |
| Dividend yield | 4.56% | 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 | UDR | VNQ |
|---|---|---|
| 2022 | -33.4% | -26.3% |
| 2023 | +3.1% | +11.9% |
| 2024 | +18.3% | +4.8% |
| 2025 | -11.8% | +3.2% |
| 2026 | +4.3% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
UDR represents 0.58% of VNQ's portfolio, so part of any move in VNQ is UDR itself, and the correlation between them is partly mechanical.
Are UDR and VNQ good diversifiers for each other?
To a limited degree. At 0.72 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 UDR and VNQ?
As of 2026-08-27, the correlation of weekly returns between UDR and VNQ is 0.72 over 3 years, 0.68 over 1 year and 0.79 over 5 years.
Is VNQ a good diversifier for UDR?
To a limited degree. At 0.72 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 0.72 mean?
On the −1 to +1 scale, 0.72 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/udr-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/udr-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: UDR correlations · VNQ correlations
