Diamondrock Hospitality Sortino Ratio
| DRH Stock | | | USD 10.79 0.13 1.22% |
The Sortino Ratio measures risk-adjusted return using only downside deviation rather than total volatility. Unlike the Sharpe Ratio, which penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only returns below a target threshold, making it a more targeted measure of harmful volatility. Below is Diamondrock Hospitality's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
Diamondrock Hospitality's Sortino Ratio of 0.1279 reflects its current reading on this measure. This reflects Diamondrock Hospitality's positioning relative to its own recent range within Hotel & Resort REITs.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.1279 | |
| ER[a] | = | Expected return on investing in Diamondrock Hospitality |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
The peer group averages 0.11 for Sortino Ratio, with Diamondrock Hospitality at 0.1279 falling above that level. Readings span 0.0086 (Global Net Lease) to 0.1747 (Sunstone Hotel Investors). Diamondrock Hospitality's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Sortino Ratio Relative To Other Indicators
The chart below plots Sortino Ratio against Maximum Drawdown for Diamondrock Hospitality and its peers. Each point represents one equity — position along the horizontal axis shows Sortino Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
At
0.13 for Sortino Ratio and
8.14 for Maximum Drawdown, Diamondrock Hospitality's cross-indicator ratio sits almost
63.61 . This indicates Maximum Drawdown substantially exceeds Sortino Ratio for Diamondrock Hospitality.
Methodology, Assumptions & Data Sources
Diamondrock Hospitality has a current Sortino Ratio reading of 0.1279. This Sortino Ratio reading for Diamondrock Hospitality results from applying the indicator's calculation rules to price and volume data over the selected window. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Diamondrock Hospitality operates in the real estate sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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