AOS vs MTH: Correlation
Measured on weekly returns over the past three years, A. O. Smith (AOS) and Meritage Homes Corporation (MTH) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and MTH?
Over the past 3 years, AOS and MTH moved with a correlation of 0.62, which is strong. Lately the two have moved closer together, with the 1-year correlation at 0.77 versus 0.62 over 3 years. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 567.6 %².
By 3-year correlation, MTH places #9 of the 33 assets tracked against AOS. Over the last 12 months MTH came out ahead by 5.6 percentage points (-12.6% against -7.0%). Risk is not evenly split, since MTH carries 1.7 times the volatility of the other side.
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.
AOS vs MTH: side by side
| AOS (A. O. Smith) | MTH (Meritage Homes Corporation) | |
|---|---|---|
| 1-year return | -12.6% | -7.0% |
| 5-year return | -6.7% | +34.0% |
| Volatility (ann.) | 23.5% | 39.0% |
| Beta vs S&P 500 | 0.67 | 0.90 |
| Max drawdown (3Y) | -36.9% | -43.0% |
| Market cap | $8.4B | $4.6B |
| P/E (trailing) | 17.4 | 15.0 |
| Dividend yield | 2.27% | 2.52% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | AOS | MTH |
|---|---|---|
| 2022 | -32.1% | -24.5% |
| 2023 | +46.7% | +90.5% |
| 2024 | -15.9% | -10.2% |
| 2025 | +0.1% | -12.3% |
| 2026 | -5.8% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and MTH good diversifiers for each other?
Only partially. A correlation of 0.62 means AOS and MTH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AOS and MTH?
As of 2026-08-27, the correlation of weekly returns between AOS and MTH is 0.62 over 3 years, 0.77 over 1 year and 0.59 over 5 years.
Is MTH a good diversifier for AOS?
Only partially. A correlation of 0.62 means AOS and MTH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 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
$ curl https://www.pairbook.io/api/v1/pairs/aos-vs-mth.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/aos-vs-mth/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AOS correlations · MTH correlations
