ARE vs. AVB
ARE (Alexandria Real Estate Equities, Inc.) and AVB (AvalonBay Communities, Inc.) are both stocks. Both are in the Real Estate sector — ARE in REIT - Office, AVB in REIT - Residential. Over the past 10 years, ARE returned -3.85%/yr vs 3.51%/yr for AVB. Their 0.61 correlation means they have sometimes moved together and sometimes differently.
Performance
ARE vs. AVB - Performance Comparison
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Returns By Period
In the year-to-date period, ARE achieves a 8.19% return, which is significantly higher than AVB's 4.48% return. Over the past 10 years, ARE has underperformed AVB with an annualized return of -3.85%, while AVB has yielded a comparatively higher 3.51% annualized return.
ARE
- 1D
- -1.98%
- 1M
- -2.15%
- 6M
- -3.10%
- YTD
- 8.19%
- 1Y
- -28.19%
- 3Y*
- -20.92%
- 5Y*
- -20.42%
- 10Y*
- -3.85%
- ALL TIME*
- 7.22%
AVB
- 1D
- -1.16%
- 1M
- -4.31%
- 6M
- 6.62%
- YTD
- 4.48%
- 1Y
- 4.63%
- 3Y*
- 3.22%
- 5Y*
- -0.65%
- 10Y*
- 3.51%
- ALL TIME*
- 11.75%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $84.25M | $80.17M | $94.50M | |
| $134.99M | $151.41M | $196.85M |
ARE vs. AVB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARE Alexandria Real Estate Equities, Inc. | 8.19% | -46.60% | -19.44% | -9.11% | -32.62% | 28.09% | 13.27% | 44.04% | -8.97% | 20.95% |
AVB AvalonBay Communities, Inc. | 4.48% | -14.60% | 21.44% | 20.34% | -33.92% | 62.17% | -20.27% | 24.10% | 1.00% | 3.89% |
Correlation
The correlation between ARE and AVB is 0.46, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.46 |
Correlation (3Y) Balances recent behavior with more history. | 0.56 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.64 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.64 |
Correlation (All Time) Calculated using the full available price history since May 28, 1997 | 0.61 |
The correlation between ARE and AVB shifts across timeframes, from 0.46 (1 year) to 0.64 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
ARE:
$8.97B
AVB:
$26.37B
ARE:
-$9.36
AVB:
$7.24
ARE:
2.01
AVB:
8.56
ARE:
$2.90B
AVB:
$3.08B
ARE:
$1.98B
AVB:
$1.62B
ARE:
$646.49M
AVB:
$1.89B
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Return for Risk
ARE vs. AVB — Risk / Return Rank
ARE
AVB
ARE vs. AVB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Alexandria Real Estate Equities, Inc. (ARE) and AvalonBay Communities, Inc. (AVB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ARE | AVB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.82 | ||
| Sortino ratioReturn per unit of downside risk | -1.04 | ||
| Omega ratioGain probability vs. loss probability | 0.91 | 1.05 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 0.22 | -0.77 |
| Martin ratioReturn relative to average drawdown | -0.81 | 0.51 | -1.32 |
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Drawdowns
ARE vs. AVB - Drawdown Comparison
The maximum ARE drawdown since its inception was -77.92%, which is greater than AVB's maximum drawdown of -70.04%. Use the drawdown chart below to compare losses from any high point for ARE and AVB.
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Drawdown Indicators
| ARE | AVB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.92% | -70.04% | -7.88% |
Max Drawdown (1Y)Largest decline over 1 year | -51.61% | -16.77% | -34.84% |
Max Drawdown (3Y)Largest decline over 3 years | -65.64% | -29.40% | -36.24% |
Max Drawdown (5Y)Largest decline over 5 years | -77.92% | -38.36% | -39.56% |
Max Drawdown (10Y)Largest decline over 10 years | -77.92% | -46.91% | -31.01% |
Current DrawdownCurrent decline from peak | -71.52% | -16.83% | -54.69% |
Average DrawdownAverage peak-to-trough decline | -17.99% | -11.76% | -6.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 35.29% | 7.04% | +28.25% |
Volatility
ARE vs. AVB - Volatility Comparison
Alexandria Real Estate Equities, Inc. (ARE) has a higher volatility of 10.25% compared to AvalonBay Communities, Inc. (AVB) at 6.71%. This indicates that ARE's price experiences larger fluctuations and is considered to be riskier than AVB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARE | AVB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.25% | 6.71% | +3.54% |
Volatility (6M)Calculated over the trailing 6-month period | 31.65% | 15.66% | +15.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.97% | 20.86% | +24.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 33.48% | 22.32% | +11.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.48% | 24.76% | +4.72% |
Dividends
ARE vs. AVB - Dividend Comparison
ARE's dividend yield for the trailing twelve months is around 6.76%, more than AVB's 3.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARE Alexandria Real Estate Equities, Inc. | 6.76% | 9.56% | 5.32% | 3.91% | 3.24% | 2.01% | 2.38% | 2.48% | 3.24% | 2.64% | 2.91% | 3.38% |
AVB AvalonBay Communities, Inc. | 3.80% | 3.86% | 3.09% | 3.53% | 3.94% | 2.52% | 3.96% | 2.90% | 3.38% | 3.18% | 3.05% | 2.72% |
Financials
ARE vs. AVB - Financials Comparison
This section allows you to compare key financial metrics between Alexandria Real Estate Equities, Inc. and AvalonBay Communities, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ARE vs. AVB - Profitability Comparison
ARE - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Alexandria Real Estate Equities, Inc. reported a gross profit of 446.88M and revenue of 671.02M. Therefore, the gross margin over that period was 66.6%.
AVB - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, AvalonBay Communities, Inc. reported a gross profit of 25.94M and revenue of 777.77M. Therefore, the gross margin over that period was 3.3%.
ARE - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Alexandria Real Estate Equities, Inc. reported an operating income of 412.20M and revenue of 671.02M, resulting in an operating margin of 61.4%.
AVB - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, AvalonBay Communities, Inc. reported an operating income of 211.80M and revenue of 777.77M, resulting in an operating margin of 27.2%.
ARE - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Alexandria Real Estate Equities, Inc. reported a net income of 358.87M and revenue of 671.02M, resulting in a net margin of 53.5%.
AVB - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, AvalonBay Communities, Inc. reported a net income of 155.72M and revenue of 777.77M, resulting in a net margin of 20.0%.
Frequently Asked Questions
ARE and AVB have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ARE has higher volatility (10.25%) compared to AVB (6.71%). In terms of maximum drawdown, ARE dropped -77.92% vs AVB's -70.04%.
AVB currently has the higher Sharpe Ratio (0.18 vs -0.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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