FOR vs MTH: Correlation
How closely do Forestar Group Inc (FOR) and Meritage Homes Corporation (MTH) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FOR and MTH?
Over the past 3 years, FOR and MTH moved with a correlation of 0.70, which is strong. The link has tightened recently: the 1-year correlation (0.82) runs above the 3-year figure (0.70). Over 5 years the correlation is 0.64, and the annualized covariance of weekly returns is 976.9 %².
Within FOR's tracked universe of 11 assets, MTH comes in at #5 by 3-year correlation. The trailing year gives FOR the advantage: +3.3% versus -7.0%, a 10.3-point spread.
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.
FOR vs MTH: side by side
| FOR (Forestar Group Inc) | MTH (Meritage Homes Corporation) | |
|---|---|---|
| 1-year return | +3.3% | -7.0% |
| 5-year return | +34.9% | +34.0% |
| Volatility (ann.) | 35.8% | 39.0% |
| Beta vs S&P 500 | 0.84 | 0.90 |
| Max drawdown (3Y) | -54.7% | -43.0% |
| Market cap | $1.5B | $4.6B |
| P/E (trailing) | 8.6 | 15.0 |
| Dividend yield | 0.00% | 2.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FOR | MTH |
|---|---|---|
| 2022 | -29.1% | -24.5% |
| 2023 | +114.6% | +90.5% |
| 2024 | -21.6% | -10.2% |
| 2025 | -5.0% | -12.3% |
| 2026 | +16.2% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FOR and MTH good diversifiers for each other?
Only partially. A correlation of 0.70 means FOR and MTH 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 FOR and MTH?
As of 2026-08-27, the correlation of weekly returns between FOR and MTH is 0.70 over 3 years, 0.82 over 1 year and 0.64 over 5 years.
Is MTH a good diversifier for FOR?
Only partially. A correlation of 0.70 means FOR and MTH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.70 mean?
On the −1 to +1 scale, 0.70 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/for-vs-mth.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/for-vs-mth/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FOR correlations · MTH correlations
