DHI vs LGIH: Correlation
Measured on weekly returns over the past three years, D. R. Horton (DHI) and LGI Homes, Inc. (LGIH) carry a correlation of 0.75, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHI and LGIH?
On 3 years of weekly data the DHI/LGIH correlation comes out at 0.75, strong. Little has changed lately, as the 1-year reading of 0.75 lands near the 3-year figure. The 5-year figure is 0.79, and annualized covariance runs at 1339.3 %².
Within DHI's tracked universe of 31 assets, LGIH comes in at #11 by 3-year correlation. Neither side won the trailing year by much: -12.2% against -9.4%. One caveat on sizing: LGIH is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 LGIH: side by side
| DHI (D. R. Horton) | LGIH (LGI Homes, Inc.) | |
|---|---|---|
| 1-year return | -12.2% | -9.4% |
| 5-year return | +59.2% | -64.2% |
| Volatility (ann.) | 33.5% | 53.2% |
| Beta vs S&P 500 | 0.79 | 1.23 |
| Max drawdown (3Y) | -41.3% | -74.8% |
| Market cap | $40.6B | $1.3B |
| P/E (trailing) | 14.2 | 20.4 |
| Dividend yield | 1.17% | 0.00% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | DHI | LGIH |
|---|---|---|
| 2022 | -16.8% | -40.1% |
| 2023 | +72.1% | +43.8% |
| 2024 | -7.2% | -32.9% |
| 2025 | +4.2% | -51.9% |
| 2026 | +1.8% | +32.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DHI and LGIH good diversifiers for each other?
Only partially. A correlation of 0.75 means DHI and LGIH 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 DHI and LGIH?
As of 2026-08-27, the correlation of weekly returns between DHI and LGIH is 0.75 over 3 years, 0.75 over 1 year and 0.79 over 5 years.
Is LGIH a good diversifier for DHI?
Only partially. A correlation of 0.75 means DHI and LGIH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.75 mean?
A reading of 0.75 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dhi-vs-lgih.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dhi-vs-lgih/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DHI correlations · LGIH correlations
