DHI vs LOW: Correlation
D. R. Horton (DHI) and Lowe's (LOW) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHI and LOW?
On 3 years of weekly data the DHI/LOW correlation comes out at 0.71, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 588.1 %².
Within DHI's tracked universe of 31 assets, LOW comes in at #13 by 3-year correlation. The trailing year gives DHI the advantage: -12.2% versus -18.4%, a 6.2-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.58 and 0.79.
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 LOW: side by side
| DHI (D. R. Horton) | LOW (Lowe's) | |
|---|---|---|
| 1-year return | -12.2% | -18.4% |
| 5-year return | +59.2% | +11.1% |
| Volatility (ann.) | 33.5% | 24.8% |
| Beta vs S&P 500 | 0.79 | 0.83 |
| Max drawdown (3Y) | -41.3% | -29.0% |
| Market cap | $40.6B | – |
| P/E (trailing) | 14.2 | 17.8 |
| Dividend yield | 1.17% | 2.31% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | DHI | LOW |
|---|---|---|
| 2022 | -16.8% | -21.5% |
| 2023 | +72.1% | +14.0% |
| 2024 | -7.2% | +13.0% |
| 2025 | +4.2% | -0.3% |
| 2026 | +1.8% | -12.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DHI and LOW good diversifiers for each other?
To a limited degree. At 0.71 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 DHI and LOW?
As of 2026-08-27, the correlation of weekly returns between DHI and LOW is 0.71 over 3 years, 0.67 over 1 year and 0.68 over 5 years.
Is LOW a good diversifier for DHI?
To a limited degree. At 0.71 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 0.71 mean?
On the −1 to +1 scale, 0.71 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.
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Related comparisons
Hubs: DHI correlations · LOW correlations
