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Downside Beta and Upside Beta: REITs Have Generally Protected Against Stock Market Declines

October 1 2018

REITs have generally provided a solid bulwark against stock market declines, with both a low correlation (typically about 60 percent when measured using monthly returns) and a low beta (typically about 0.6, also based on monthly returns) to the broad stock market.

No investment is likely to be “the magic bullet” in terms of semi-beta properties, but it turns out that REITs have performed pretty darn well.

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