AVB vs. ESS
AVB (AvalonBay Communities, Inc.) and ESS (Essex Property Trust, Inc.) are both stocks. Both operate in the REIT - Residential industry within the Real Estate sector. Over the past 10 years, AVB returned 4.47%/yr vs 6.49%/yr for ESS. A 0.70 correlation means they provide meaningful diversification when combined.
Performance
AVB vs. ESS - Performance Comparison
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Returns By Period
In the year-to-date period, AVB achieves a 4.63% return, which is significantly lower than ESS's 10.01% return. Over the past 10 years, AVB has underperformed ESS with an annualized return of 4.47%, while ESS has yielded a comparatively higher 6.49% annualized return.
AVB
- 1D
- -1.11%
- 1M
- 1.92%
- YTD
- 4.63%
- 6M
- 7.83%
- 1Y
- -4.05%
- 3Y*
- 3.50%
- 5Y*
- 1.10%
- 10Y*
- 4.47%
ESS
- 1D
- -1.20%
- 1M
- 7.00%
- YTD
- 10.01%
- 6M
- 14.13%
- 1Y
- 5.10%
- 3Y*
- 10.51%
- 5Y*
- 1.70%
- 10Y*
- 6.49%
AVB vs. ESS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AVB AvalonBay Communities, Inc. | 4.63% | -14.60% | 21.44% | 20.34% | -33.92% | 62.17% | -20.27% | 24.10% | 1.00% | 3.89% |
ESS Essex Property Trust, Inc. | 10.01% | -4.98% | 18.36% | 21.97% | -37.76% | 52.40% | -18.09% | 25.92% | 4.83% | 6.82% |
Correlation
The correlation between AVB and ESS is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.86 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Jun 8, 1994 | 0.70 |
The correlation between AVB and ESS shifts across timeframes, from 0.70 (all time) to 0.88 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
AVB:
$8.02
ESS:
$9.59
AVB:
23.40
ESS:
29.41
AVB:
13.46
ESS:
2.06
AVB:
8.72
ESS:
7.14
AVB:
$3.06B
ESS:
$1.91B
AVB:
$2.08B
ESS:
$1.32B
AVB:
$1.99B
ESS:
$1.44B
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Return for Risk
AVB vs. ESS — Risk / Return Rank
AVB
ESS
AVB vs. ESS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for AvalonBay Communities, Inc. (AVB) and Essex Property Trust, Inc. (ESS). 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.
| AVB | ESS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.45 | ||
| Sortino ratioReturn per unit of downside risk | -0.61 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.06 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | -0.19 | 0.31 | -0.51 |
| Martin ratioReturn relative to average drawdown | -0.37 | 0.52 | -0.89 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AVB | ESS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.20 | 0.25 | -0.45 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.07 | -0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.18 | 0.25 | -0.07 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.42 | 0.50 | -0.08 |
Drawdowns
AVB vs. ESS - Drawdown Comparison
The maximum AVB drawdown since its inception was -70.04%, which is greater than ESS's maximum drawdown of -62.67%. Use the drawdown chart below to compare losses from any high point for AVB and ESS.
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Drawdown Indicators
| AVB | ESS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -70.04% | -62.67% | -7.37% |
Max Drawdown (1Y)Largest decline over 1 year | -20.87% | -16.49% | -4.38% |
Max Drawdown (3Y)Largest decline over 3 years | -29.40% | -20.77% | -8.63% |
Max Drawdown (5Y)Largest decline over 5 years | -38.36% | -43.87% | +5.51% |
Max Drawdown (10Y)Largest decline over 10 years | -46.91% | -44.84% | -2.07% |
Current DrawdownCurrent decline from peak | -16.71% | -8.50% | -8.21% |
Average DrawdownAverage peak-to-trough decline | -11.74% | -10.86% | -0.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.95% | 9.80% | +1.15% |
Volatility
AVB vs. ESS - Volatility Comparison
AvalonBay Communities, Inc. (AVB) has a higher volatility of 5.81% compared to Essex Property Trust, Inc. (ESS) at 5.19%. This indicates that AVB's price experiences larger fluctuations and is considered to be riskier than ESS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AVB | ESS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.81% | 5.19% | +0.62% |
Volatility (6M)Calculated over the trailing 6-month period | 15.17% | 14.23% | +0.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.23% | 20.86% | -0.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.21% | 23.71% | -1.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.69% | 25.82% | -1.13% |
Dividends
AVB vs. ESS - Dividend Comparison
AVB's dividend yield for the trailing twelve months is around 3.75%, more than ESS's 3.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVB AvalonBay Communities, Inc. | 3.75% | 3.86% | 3.09% | 3.53% | 3.94% | 2.52% | 3.96% | 2.90% | 3.38% | 3.18% | 3.05% | 2.72% |
ESS Essex Property Trust, Inc. | 3.65% | 3.88% | 2.57% | 3.73% | 4.15% | 2.37% | 3.50% | 2.59% | 3.03% | 2.90% | 2.75% | 2.41% |
Financials
AVB vs. ESS - Financials Comparison
This section allows you to compare key financial metrics between AvalonBay Communities, Inc. and Essex Property Trust, 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
AVB vs. ESS - Profitability Comparison
AVB - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, AvalonBay Communities, Inc. reported a gross profit of 521.68M and revenue of 770.28M. Therefore, the gross margin over that period was 67.7%.
ESS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Essex Property Trust, Inc. reported a gross profit of 343.50M and revenue of 484.76M. Therefore, the gross margin over that period was 70.9%.
AVB - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, AvalonBay Communities, Inc. reported an operating income of 218.54M and revenue of 770.28M, resulting in an operating margin of 28.4%.
ESS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Essex Property Trust, Inc. reported an operating income of 155.19M and revenue of 484.76M, resulting in an operating margin of 32.0%.
AVB - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, AvalonBay Communities, Inc. reported a net income of 325.73M and revenue of 770.28M, resulting in a net margin of 42.3%.
ESS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Essex Property Trust, Inc. reported a net income of -6.02M and revenue of 484.76M, resulting in a net margin of -1.2%.
Frequently Asked Questions
AVB and ESS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AVB has higher volatility (5.81%) compared to ESS (5.19%). In terms of maximum drawdown, AVB dropped -70.04% vs ESS's -62.67%.
ESS currently has the higher Sharpe Ratio (0.25 vs -0.20), 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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