Correlation Between Digitalbridge and Diamondrock Hospitality
Can any of the company-specific risk be diversified away by investing in both Digitalbridge and Diamondrock Hospitality at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Digitalbridge and Diamondrock Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digitalbridge Group and Diamondrock Hospitality, you can compare the effects of market volatilities on Digitalbridge and Diamondrock Hospitality and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Digitalbridge with a short position of Diamondrock Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digitalbridge and Diamondrock Hospitality.
Diversification Opportunities for Digitalbridge and Diamondrock Hospitality
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digitalbridge and Diamondrock is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Digitalbridge Group and Diamondrock Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamondrock Hospitality and Digitalbridge is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Digitalbridge Group are associated (or correlated) with Diamondrock Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamondrock Hospitality has no effect on the direction of Digitalbridge i.e., Digitalbridge and Diamondrock Hospitality go up and down completely randomly.
Pair Corralation between Digitalbridge and Diamondrock Hospitality
Given the investment horizon of 90 days Digitalbridge Group is expected to under-perform the Diamondrock Hospitality. In addition to that, Digitalbridge is 2.06 times more volatile than Diamondrock Hospitality. It trades about -0.06 of its total potential returns per unit of risk. Diamondrock Hospitality is currently generating about 0.1 per unit of volatility. If you would invest 795.00 in Diamondrock Hospitality on August 20, 2025 and sell it today you would earn a total of 91.00 from holding Diamondrock Hospitality or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digitalbridge Group vs. Diamondrock Hospitality
Performance |
| Timeline |
| Digitalbridge Group |
| Diamondrock Hospitality |
Digitalbridge and Diamondrock Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digitalbridge and Diamondrock Hospitality
The main advantage of trading using opposite Digitalbridge and Diamondrock Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digitalbridge position performs unexpectedly, Diamondrock Hospitality can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diamondrock Hospitality will offset losses from the drop in Diamondrock Hospitality's long position.| Digitalbridge vs. Urban Edge Properties | Digitalbridge vs. National Storage Affiliates | Digitalbridge vs. Douglas Emmett | Digitalbridge vs. EPR Properties |
| Diamondrock Hospitality vs. Chatham Lodging Trust | Diamondrock Hospitality vs. Host Hotels Resorts | Diamondrock Hospitality vs. Park Hotels Resorts | Diamondrock Hospitality vs. Sunstone Hotel Investors |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |