UDR vs XLRE: Correlation
How closely do UDR, Inc. (UDR) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UDR and XLRE?
Over the past 3 years, UDR and XLRE moved with a correlation of 0.71, which is strong. Recent behaviour matches the longer record: 0.69 over 1 year against 0.71 over 3. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 250.2 %².
By 3-year correlation, XLRE places #10 of the 32 assets tracked against UDR. The trailing year gives XLRE the advantage: -0.6% versus +9.5%, a 10.1-point spread. The rolling one-year correlation stayed in a tight band between 0.60 and 0.84 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 XLRE: side by side
| UDR (UDR, Inc.) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -0.6% | +9.5% |
| 5-year return | -15.5% | +11.4% |
| Volatility (ann.) | 21.1% | 16.7% |
| Beta vs S&P 500 | 0.54 | 0.57 |
| Max drawdown (3Y) | -24.9% | -16.6% |
| Market cap | $13.6B | – |
| P/E (trailing) | 23.9 | – |
| Dividend yield | 4.56% | 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 | UDR | XLRE |
|---|---|---|
| 2022 | -33.4% | -26.2% |
| 2023 | +3.1% | +12.4% |
| 2024 | +18.3% | +5.1% |
| 2025 | -11.8% | +2.6% |
| 2026 | +4.3% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.13% of XLRE is UDR itself, so the fund partly moves with the stock by construction.
Are UDR and XLRE good diversifiers for each other?
To a limited degree. At 0.71 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 XLRE?
As of 2026-08-27, the correlation of weekly returns between UDR and XLRE is 0.71 over 3 years, 0.69 over 1 year and 0.78 over 5 years.
Is XLRE a good diversifier for UDR?
To a limited degree. At 0.71 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 0.71 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/udr-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/udr-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: UDR correlations · XLRE correlations
