DRH vs RLJ: Correlation
How closely do Diamondrock Hospitality Company (DRH) and RLJ Lodging Trust (RLJ) trade together? Their weekly returns over three years give a correlation of 0.86, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DRH and RLJ?
Over the past 3 years, DRH and RLJ moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.79 over 1 year against 0.86 over 3. Over 5 years the correlation is 0.89, and the annualized covariance of weekly returns is 581.5 %².
Few assets follow DRH as closely as RLJ, which ranks #2 of 20 tracked partners. Twelve-month performance is nearly a tie, at +53.8% for DRH and +56.8% for RLJ.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
DRH vs RLJ: side by side
| DRH (Diamondrock Hospitality Company) | RLJ (RLJ Lodging Trust) | |
|---|---|---|
| 1-year return | +53.8% | +56.8% |
| 5-year return | +60.8% | -2.6% |
| Volatility (ann.) | 25.1% | 27.0% |
| Beta vs S&P 500 | 0.80 | 0.76 |
| Max drawdown (3Y) | -31.9% | -44.2% |
| Market cap | $2.6B | $1.7B |
| P/E (trailing) | 17.6 | 1138.0 |
| Dividend yield | 3.84% | 5.24% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DRH | RLJ |
|---|---|---|
| 2022 | -13.8% | -23.1% |
| 2023 | +16.3% | +14.6% |
| 2024 | -0.3% | -8.4% |
| 2025 | +3.7% | -21.0% |
| 2026 | +44.1% | +57.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DRH and RLJ good diversifiers for each other?
No. With a correlation of 0.86, DRH and RLJ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DRH and RLJ?
Using weekly returns as of 2026-08-27: 0.86 over 3 years, with 0.79 over the last year and 0.89 over 5 years.
Is RLJ a good diversifier for DRH?
No. With a correlation of 0.86, DRH and RLJ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.86 mean?
A reading of 0.86 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/drh-vs-rlj.json
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The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DRH correlations · RLJ correlations
