Although real estate can offer lower or negative correlation to equities, vehicle selection is a critical determinant of correlation benefits. This chart shows the correlation between REITS and the S&P 500 in gray, and the correlation between direct real estate and the S&P 500 in light blue. During normal times, REITs can offer low correlation to equities, but during times of stress, REITS have a very high correlation to equities. On the other hand, during these same periods of stress direct real estate offered a low or negative correlation.