AVB vs. REZ
AVB (AvalonBay Communities, Inc.) is a stock, while REZ (iShares Residential Real Estate ETF) is REIT fund tracking the FTSE NAREIT All Residential Capped Index. Over the past 10 years, AVB returned 3.88%/yr vs 6.61%/yr for REZ. Their correlation of 0.85 suggests significant overlap in exposure.
Performance
AVB vs. REZ - Performance Comparison
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Returns By Period
In the year-to-date period, AVB achieves a 0.32% return, which is significantly lower than REZ's 9.54% return. Over the past 10 years, AVB has underperformed REZ with an annualized return of 3.88%, while REZ has yielded a comparatively higher 6.61% annualized return.
AVB
- 1D
- 1.45%
- 1M
- -3.10%
- YTD
- 0.32%
- 6M
- 0.61%
- 1Y
- -9.71%
- 3Y*
- 3.34%
- 5Y*
- 0.06%
- 10Y*
- 3.88%
REZ
- 1D
- 1.06%
- 1M
- -1.63%
- YTD
- 9.54%
- 6M
- 9.75%
- 1Y
- 12.37%
- 3Y*
- 11.60%
- 5Y*
- 3.90%
- 10Y*
- 6.61%
AVB vs. REZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AVB AvalonBay Communities, Inc. | 0.32% | -14.60% | 21.44% | 20.34% | -33.92% | 62.17% | -20.27% | 24.10% | 1.00% | 3.89% |
REZ iShares Residential Real Estate ETF | 9.54% | 4.80% | 12.73% | 10.97% | -28.31% | 47.86% | -6.62% | 24.49% | 3.89% | 3.87% |
Correlation
The correlation between AVB and REZ is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since May 4, 2007 | 0.85 |
The correlation between AVB and REZ shifts across timeframes, from 0.75 (1 year) to 0.86 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
AVB vs. REZ — Risk / Return Rank
AVB
REZ
AVB vs. REZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for AvalonBay Communities, Inc. (AVB) and iShares Residential Real Estate ETF (REZ). 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.
| AVB | REZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.31 | ||
| Sortino ratioReturn per unit of downside risk | -1.74 | ||
| Omega ratioGain probability vs. loss probability | 0.93 | 1.15 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | -0.48 | 1.42 | -1.89 |
| Martin ratioReturn relative to average drawdown | -0.92 | 4.29 | -5.20 |
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Drawdowns
AVB vs. REZ - Drawdown Comparison
The maximum AVB drawdown since its inception was -70.04%, roughly equal to the maximum REZ drawdown of -66.87%. Use the drawdown chart below to compare losses from any high point for AVB and REZ.
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Drawdown Indicators
| AVB | REZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -70.04% | -66.87% | -3.17% |
Max Drawdown (1Y)Largest decline over 1 year | -20.43% | -8.76% | -11.67% |
Max Drawdown (3Y)Largest decline over 3 years | -29.40% | -18.39% | -11.01% |
Max Drawdown (5Y)Largest decline over 5 years | -38.36% | -35.05% | -3.31% |
Max Drawdown (10Y)Largest decline over 10 years | -46.91% | -44.15% | -2.76% |
Current DrawdownCurrent decline from peak | -20.14% | -2.45% | -17.69% |
Average DrawdownAverage peak-to-trough decline | -11.75% | -12.66% | +0.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.62% | 2.89% | +7.73% |
Volatility
AVB vs. REZ - Volatility Comparison
AvalonBay Communities, Inc. (AVB) and iShares Residential Real Estate ETF (REZ) have volatilities of 5.94% and 5.73%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AVB | REZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.94% | 5.73% | +0.21% |
Volatility (6M)Calculated over the trailing 6-month period | 15.45% | 11.43% | +4.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.45% | 14.99% | +5.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.21% | 18.98% | +3.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.73% | 21.57% | +3.16% |
Dividends
AVB vs. REZ - Dividend Comparison
AVB's dividend yield for the trailing twelve months is around 3.91%, more than REZ's 2.10% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVB AvalonBay Communities, Inc. | 3.91% | 3.86% | 3.09% | 3.53% | 3.94% | 2.52% | 3.96% | 2.90% | 3.38% | 3.18% | 3.05% | 2.72% |
REZ iShares Residential Real Estate ETF | 2.10% | 2.74% | 2.26% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.55% | 3.18% |
Frequently Asked Questions
AVB and REZ have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AVB has higher volatility (5.94%) compared to REZ (5.73%). In terms of maximum drawdown, AVB dropped -70.04% vs REZ's -66.87%.
REZ currently has the higher Sharpe Ratio (0.83 vs -0.48), 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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