RLJ vs SHO: Correlation
RLJ Lodging Trust (RLJ) and Sunstone Hotel Investors, Inc. (SHO) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RLJ and SHO?
Across a 3-year window, the weekly returns of RLJ and SHO correlate at 0.81, 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. Stretching to 5 years gives 0.86, with an annualized covariance of 511.6 %².
Among the 17 assets we track against RLJ, SHO ranks #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months RLJ outperformed by 35.4 percentage points (+56.8% for RLJ against +21.4% for SHO).
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.
RLJ vs SHO: side by side
| RLJ (RLJ Lodging Trust) | SHO (Sunstone Hotel Investors, Inc.) | |
|---|---|---|
| 1-year return | +56.8% | +21.4% |
| 5-year return | -2.6% | +10.7% |
| Volatility (ann.) | 27.0% | 23.4% |
| Beta vs S&P 500 | 0.76 | 0.76 |
| Max drawdown (3Y) | -44.2% | -36.6% |
| Market cap | $1.7B | $2.1B |
| P/E (trailing) | 1138.0 | 50.9 |
| Dividend yield | 5.24% | 3.21% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | RLJ | SHO |
|---|---|---|
| 2022 | -23.1% | -16.8% |
| 2023 | +14.6% | +14.4% |
| 2024 | -8.4% | +13.9% |
| 2025 | -21.0% | -21.5% |
| 2026 | +57.9% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RLJ and SHO good diversifiers for each other?
No: a correlation of 0.81 means RLJ and SHO tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between RLJ and SHO?
The RLJ/SHO correlation stands at 0.81 on a 3-year window (1 year: 0.82, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is SHO a good diversifier for RLJ?
No: a correlation of 0.81 means RLJ and SHO tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.81 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: RLJ correlations · SHO correlations
