DHI vs TOL: Correlation
D. R. Horton (DHI) and Toll Brothers, Inc. (TOL) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHI and TOL?
On 3 years of weekly data the DHI/TOL correlation comes out at 0.86, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.90 lands near the 3-year figure. The 5-year figure is 0.86, and annualized covariance runs at 997.6 %².
Within DHI's tracked universe of 31 assets, TOL comes in at #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TOL ahead by 18.2 points (-12.2% versus +6.0%).
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 TOL: side by side
| DHI (D. R. Horton) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -12.2% | +6.0% |
| 5-year return | +59.2% | +139.9% |
| Volatility (ann.) | 33.5% | 34.9% |
| Beta vs S&P 500 | 0.79 | 1.14 |
| Max drawdown (3Y) | -41.3% | -46.0% |
| Market cap | $40.6B | $13.4B |
| P/E (trailing) | 14.2 | 11.9 |
| Dividend yield | 1.17% | 0.69% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | DHI | TOL |
|---|---|---|
| 2022 | -16.8% | -30.0% |
| 2023 | +72.1% | +108.6% |
| 2024 | -7.2% | +23.4% |
| 2025 | +4.2% | +8.3% |
| 2026 | +1.8% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DHI and TOL good diversifiers for each other?
No: a correlation of 0.86 means DHI and TOL tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DHI and TOL?
The DHI/TOL correlation stands at 0.86 on a 3-year window (1 year: 0.90, 5 years: 0.86), computed from weekly returns as of 2026-08-27.
Is TOL a good diversifier for DHI?
No: a correlation of 0.86 means DHI and TOL tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 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/dhi-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dhi-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DHI correlations · TOL correlations
