HD vs TOL: Correlation
Home Depot (The) (HD) and Toll Brothers, Inc. (TOL) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and TOL?
Over the past 3 years, HD and TOL moved with a correlation of 0.74, which is strong. Recent behaviour matches the longer record: 0.77 over 1 year against 0.74 over 3. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 607.0 %².
In HD's tracked universe of 54 assets, TOL sits right near the top at #3. Correlation aside, the last 12 months split them widely, with TOL ahead by 23.4 points (-17.4% 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.
HD vs TOL: side by side
| HD (Home Depot (The)) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -17.4% | +6.0% |
| 5-year return | +13.8% | +139.9% |
| Volatility (ann.) | 23.6% | 34.9% |
| Beta vs S&P 500 | 0.87 | 1.14 |
| Max drawdown (3Y) | -28.8% | -46.0% |
| Market cap | $327.9B | $13.4B |
| P/E (trailing) | 23.4 | 11.9 |
| Dividend yield | 1.38% | 0.69% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | HD | TOL |
|---|---|---|
| 2022 | -22.0% | -30.0% |
| 2023 | +12.8% | +108.6% |
| 2024 | +15.0% | +23.4% |
| 2025 | -9.3% | +8.3% |
| 2026 | -3.1% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and TOL good diversifiers for each other?
Only partially. A correlation of 0.74 means HD and TOL 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 HD and TOL?
The HD/TOL correlation stands at 0.74 on a 3-year window (1 year: 0.77, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is TOL a good diversifier for HD?
Only partially. A correlation of 0.74 means HD and TOL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/hd-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hd-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HD correlations · TOL correlations
