HD vs LOW: Correlation
Measured on weekly returns over the past three years, Home Depot (The) (HD) and Lowe's (LOW) carry a correlation of 0.88, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and LOW?
On 3 years of weekly data the HD/LOW correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.82 lands near the 3-year figure. The 5-year figure is 0.89, and annualized covariance runs at 518.6 %².
Few assets follow HD as closely as LOW, which ranks #1 of 54 tracked partners. Their 12-month results are close: -17.4% for HD against -18.4% for LOW. Stability stands out here, with the rolling one-year correlation confined to 0.83 through 0.93.
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.
HD vs LOW: side by side
| HD (Home Depot (The)) | LOW (Lowe's) | |
|---|---|---|
| 1-year return | -17.4% | -18.4% |
| 5-year return | +13.8% | +11.1% |
| Volatility (ann.) | 23.6% | 24.8% |
| Beta vs S&P 500 | 0.87 | 0.83 |
| Max drawdown (3Y) | -28.8% | -29.0% |
| Market cap | $327.9B | – |
| P/E (trailing) | 23.4 | 17.8 |
| Dividend yield | 1.38% | 2.31% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | HD | LOW |
|---|---|---|
| 2022 | -22.0% | -21.5% |
| 2023 | +12.8% | +14.0% |
| 2024 | +15.0% | +13.0% |
| 2025 | -9.3% | -0.3% |
| 2026 | -3.1% | -12.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and LOW good diversifiers for each other?
No. With a correlation of 0.88, HD and LOW move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between HD and LOW?
The HD/LOW correlation stands at 0.88 on a 3-year window (1 year: 0.82, 5 years: 0.89), computed from weekly returns as of 2026-08-27.
Is LOW a good diversifier for HD?
No. With a correlation of 0.88, HD and LOW move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.88 mean?
On the −1 to +1 scale, 0.88 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: HD correlations · LOW correlations
