REITs and Correlations with Other Asset Classes: A European Perspective

@inproceedings{Niskanen2010REITsAC,
  title={REITs and Correlations with Other Asset Classes: A European Perspective},
  author={Jaakko Niskanen and Heidi Falkenbach},
  year={2010}
}
Executive Summary. Long present in the United States, real estate investment trusts (REITs) are a fairly new phenomenon in Europe. This paper examines the sensitivity of European REIT returns to returns in other asset classes, including equities, bonds, and commodities. Consistent with previous studies, the results suggest that a significant positive correlation is observed between REITs and equities, especially small cap- and value stocks; REIT correlation to fixed income securities is found… CONTINUE READING