DFH vs TOL: Correlation
Measured on weekly returns over the past three years, Dream Finders Homes, Inc. (DFH) and Toll Brothers, Inc. (TOL) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DFH and TOL?
Across a 3-year window, the weekly returns of DFH and TOL correlate at 0.76, strong. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. Stretching to 5 years gives 0.70, with an annualized covariance of 1443.6 %².
By 3-year correlation, TOL places #5 of the 17 assets tracked against DFH. The last year tells two different stories: TOL led by 54.8 percentage points, -48.8% for DFH against +6.0% for TOL. Note the risk asymmetry: DFH runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
DFH vs TOL: side by side
| DFH (Dream Finders Homes, Inc.) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -48.8% | +6.0% |
| 5-year return | -30.7% | +139.9% |
| Volatility (ann.) | 54.8% | 34.9% |
| Beta vs S&P 500 | 1.62 | 1.14 |
| Max drawdown (3Y) | -71.3% | -46.0% |
| Market cap | $1.3B | $13.4B |
| P/E (trailing) | 10.4 | 11.9 |
| Dividend yield | 0.00% | 0.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | DFH | TOL |
|---|---|---|
| 2022 | -55.5% | -30.0% |
| 2023 | +310.3% | +108.6% |
| 2024 | -34.5% | +23.4% |
| 2025 | -26.5% | +8.3% |
| 2026 | -16.0% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DFH and TOL good diversifiers for each other?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between DFH and TOL?
The DFH/TOL correlation stands at 0.76 on a 3-year window (1 year: 0.73, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is TOL a good diversifier for DFH?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.76 mean?
On the −1 to +1 scale, 0.76 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dfh-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dfh-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DFH correlations · TOL correlations
