DHI vs LEN: Correlation
How closely do D. R. Horton (DHI) and Lennar (LEN) trade together? Their weekly returns over three years give a correlation of 0.90, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHI and LEN?
Across a 3-year window, the weekly returns of DHI and LEN correlate at 0.90, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.86) sits close to the 3-year figure. Stretching to 5 years gives 0.92, with an annualized covariance of 977.7 %².
LEN is one of the assets that tracks DHI most closely: it ranks #2 out of the 31 assets we track against DHI. Their recent paths diverged sharply: over the last 12 months DHI outperformed by 22.7 percentage points (-12.2% for DHI against -34.9% for LEN). The link looks structural: the rolling one-year correlation barely moved, holding between 0.86 and 0.95.
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.
DHI vs LEN: side by side
| DHI (D. R. Horton) | LEN (Lennar) | |
|---|---|---|
| 1-year return | -12.2% | -34.9% |
| 5-year return | +59.2% | -11.7% |
| Volatility (ann.) | 33.5% | 32.6% |
| Beta vs S&P 500 | 0.79 | 0.84 |
| Max drawdown (3Y) | -41.3% | -54.5% |
| Market cap | $40.6B | $20.5B |
| P/E (trailing) | 14.2 | 13.7 |
| Dividend yield | 1.17% | 2.29% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | DHI | LEN |
|---|---|---|
| 2022 | -16.8% | -20.6% |
| 2023 | +72.1% | +66.9% |
| 2024 | -7.2% | -7.3% |
| 2025 | +4.2% | -20.8% |
| 2026 | +1.8% | -15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DHI and LEN good diversifiers for each other?
No. With a correlation of 0.90, DHI and LEN move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DHI and LEN?
As of 2026-08-27, the correlation of weekly returns between DHI and LEN is 0.90 over 3 years, 0.86 over 1 year and 0.92 over 5 years.
Is LEN a good diversifier for DHI?
No. With a correlation of 0.90, DHI and LEN move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.90 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.
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Related comparisons
Hubs: DHI correlations · LEN correlations
