Diamondrock Hospitality Stock Market Value
| DRH Stock | USD 9.15 0.20 2.23% |
| Symbol | Diamondrock |
Diamondrock Hospitality Price To Book Ratio
Is Diamondrock Hospitality's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diamondrock Hospitality. If investors know Diamondrock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diamondrock Hospitality listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.47) | Dividend Share 0.12 | Earnings Share 0.36 | Revenue Per Share 5.082 | Quarterly Revenue Growth 0.033 |
The market value of Diamondrock Hospitality is measured differently than its book value, which is the value of Diamondrock that is recorded on the company's balance sheet. Investors also form their own opinion of Diamondrock Hospitality's value that differs from its market value or its book value, called intrinsic value, which is Diamondrock Hospitality's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diamondrock Hospitality's market value can be influenced by many factors that don't directly affect Diamondrock Hospitality's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diamondrock Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamondrock Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamondrock Hospitality's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Diamondrock Hospitality 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Diamondrock Hospitality's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Diamondrock Hospitality.
| 10/27/2023 |
| 04/24/2024 |
If you would invest 0.00 in Diamondrock Hospitality on October 27, 2023 and sell it all today you would earn a total of 0.00 from holding Diamondrock Hospitality or generate 0.0% return on investment in Diamondrock Hospitality over 180 days. Diamondrock Hospitality is related to or competes with RLJ Lodging, Sunstone Hotel, and Ryman Hospitality. DiamondRock Hospitality Company is a self-advised real estate investment trust that is an owner of a leading portfolio o... More
Diamondrock Hospitality Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Diamondrock Hospitality's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Diamondrock Hospitality upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 6.0 | |||
| Value At Risk | (2.96) | |||
| Potential Upside | 2.23 |
Diamondrock Hospitality Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Diamondrock Hospitality's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Diamondrock Hospitality's standard deviation. In reality, there are many statistical measures that can use Diamondrock Hospitality historical prices to predict the future Diamondrock Hospitality's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.28) | |||
| Treynor Ratio | (0.05) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Diamondrock Hospitality's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Diamondrock Hospitality Backtested Returns
We consider Diamondrock Hospitality not too volatile. Diamondrock Hospitality secures Sharpe Ratio (or Efficiency) of 0.0072, which denotes the company had a 0.0072% return per unit of standard deviation over the last 3 months. We have found twenty-three technical indicators for Diamondrock Hospitality, which you can use to evaluate the volatility of the firm. Please confirm Diamondrock Hospitality's Coefficient Of Variation of (2,303), standard deviation of 1.49, and Mean Deviation of 1.18 to check if the risk estimate we provide is consistent with the expected return of 0.0104%. The firm shows a Beta (market volatility) of 1.64, which means a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Diamondrock Hospitality will likely underperform. Diamondrock Hospitality right now shows a risk of 1.45%. Please confirm Diamondrock Hospitality standard deviation, kurtosis, period momentum indicator, as well as the relationship between the maximum drawdown and day median price , to decide if Diamondrock Hospitality will be following its price patterns.
Auto-correlation | 0.29 |
Poor predictability
Diamondrock Hospitality has poor predictability. Overlapping area represents the amount of predictability between Diamondrock Hospitality time series from 27th of October 2023 to 25th of January 2024 and 25th of January 2024 to 24th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Diamondrock Hospitality price movement. The serial correlation of 0.29 indicates that nearly 29.0% of current Diamondrock Hospitality price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.29 | |
| Spearman Rank Test | 0.23 | |
| Residual Average | 0.0 | |
| Price Variance | 0.04 |
Diamondrock Hospitality lagged returns against current returns
Autocorrelation, which is Diamondrock Hospitality stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Diamondrock Hospitality's stock expected returns. We can calculate the autocorrelation of Diamondrock Hospitality returns to help us make a trade decision. For example, suppose you find that Diamondrock Hospitality has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Diamondrock Hospitality regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Diamondrock Hospitality stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Diamondrock Hospitality stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Diamondrock Hospitality stock over time.
Current vs Lagged Prices |
| Timeline |
Diamondrock Hospitality Lagged Returns
When evaluating Diamondrock Hospitality's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Diamondrock Hospitality stock have on its future price. Diamondrock Hospitality autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Diamondrock Hospitality autocorrelation shows the relationship between Diamondrock Hospitality stock current value and its past values and can show if there is a momentum factor associated with investing in Diamondrock Hospitality.
Regressed Prices |
| Timeline |
Diamondrock Hospitality Investors Sentiment
The influence of Diamondrock Hospitality's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Diamondrock. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Diamondrock Hospitality's public news can be used to forecast risks associated with an investment in Diamondrock. The trend in average sentiment can be used to explain how an investor holding Diamondrock can time the market purely based on public headlines and social activities around Diamondrock Hospitality. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Diamondrock Hospitality's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Diamondrock Hospitality's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Diamondrock Hospitality's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Diamondrock Hospitality.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Diamondrock Hospitality in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Diamondrock Hospitality's short interest history, or implied volatility extrapolated from Diamondrock Hospitality options trading.
Pair Trading with Diamondrock Hospitality
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diamondrock Hospitality position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Diamondrock Stock
| 0.65 | PK | Park Hotels Resorts Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Diamondrock Hospitality could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diamondrock Hospitality when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diamondrock Hospitality - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diamondrock Hospitality to buy it.
The correlation of Diamondrock Hospitality is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diamondrock Hospitality moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diamondrock Hospitality moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Diamondrock Hospitality can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Diamondrock Hospitality Correlation, Diamondrock Hospitality Volatility and Diamondrock Hospitality Alpha and Beta module to complement your research on Diamondrock Hospitality. For more detail on how to invest in Diamondrock Stock please use our How to Invest in Diamondrock Hospitality guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Complementary Tools for Diamondrock Stock analysis
When running Diamondrock Hospitality's price analysis, check to measure Diamondrock Hospitality's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diamondrock Hospitality is operating at the current time. Most of Diamondrock Hospitality's value examination focuses on studying past and present price action to predict the probability of Diamondrock Hospitality's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diamondrock Hospitality's price. Additionally, you may evaluate how the addition of Diamondrock Hospitality to your portfolios can decrease your overall portfolio volatility.
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Diamondrock Hospitality technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.