HD vs RL: Correlation
Measured on weekly returns over the past three years, Home Depot (The) (HD) and Ralph Lauren Corporation (RL) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and RL?
Over the past 3 years, HD and RL moved with a correlation of 0.52, which is moderate. Recent behaviour matches the longer record: 0.58 over 1 year against 0.52 over 3. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 412.0 %².
Among the 54 assets we track against HD, RL ranks #26 by 3-year correlation. Correlation aside, the last 12 months split them widely, with RL ahead by 38.1 points (-17.4% versus +20.7%). Stability stands out here, with the rolling one-year correlation confined to 0.40 through 0.56.
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 RL: side by side
| HD (Home Depot (The)) | RL (Ralph Lauren Corporation) | |
|---|---|---|
| 1-year return | -17.4% | +20.7% |
| 5-year return | +13.8% | +232.5% |
| Volatility (ann.) | 23.6% | 33.6% |
| Beta vs S&P 500 | 0.87 | 1.07 |
| Max drawdown (3Y) | -28.8% | -36.2% |
| Market cap | $327.9B | $21.0B |
| P/E (trailing) | 23.4 | 22.8 |
| Dividend yield | 1.38% | 1.03% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | HD | RL |
|---|---|---|
| 2022 | -22.0% | -8.4% |
| 2023 | +12.8% | +39.8% |
| 2024 | +15.0% | +62.9% |
| 2025 | -9.3% | +55.0% |
| 2026 | -3.1% | +0.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and RL good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HD and RL?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.58 over the last year and 0.49 over 5 years.
Is RL a good diversifier for HD?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
On the −1 to +1 scale, 0.52 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 · RL correlations
