PEB vs RLJ: Correlation
Measured on weekly returns over the past three years, Pebblebrook Hotel Trust (PEB) and RLJ Lodging Trust (RLJ) carry a correlation of 0.83, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEB and RLJ?
Over the past 3 years, PEB and RLJ moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.87, and the annualized covariance of weekly returns is 793.5 %².
RLJ is one of the assets that tracks PEB most closely: it ranks #1 out of the 15 assets we track against PEB. On 12-month performance PEB holds a 6.3-point edge, +63.1% against +56.8%.
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.
PEB vs RLJ: side by side
| PEB (Pebblebrook Hotel Trust) | RLJ (RLJ Lodging Trust) | |
|---|---|---|
| 1-year return | +63.1% | +56.8% |
| 5-year return | -14.2% | -2.6% |
| Volatility (ann.) | 35.5% | 27.0% |
| Beta vs S&P 500 | 1.16 | 0.76 |
| Max drawdown (3Y) | -53.4% | -44.2% |
| Market cap | $2.1B | $1.7B |
| P/E (trailing) | – | 1138.0 |
| Dividend yield | 0.22% | 5.24% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | PEB | RLJ |
|---|---|---|
| 2022 | -40.0% | -23.1% |
| 2023 | +19.7% | +14.6% |
| 2024 | -15.0% | -8.4% |
| 2025 | -16.1% | -21.0% |
| 2026 | +61.7% | +57.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PEB and RLJ good diversifiers for each other?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between PEB and RLJ?
As of 2026-08-27, the correlation of weekly returns between PEB and RLJ is 0.83 over 3 years, 0.82 over 1 year and 0.87 over 5 years.
Is RLJ a good diversifier for PEB?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.83 mean?
On the −1 to +1 scale, 0.83 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: PEB correlations · RLJ correlations
