HOV vs MTH: Correlation
How closely do Hovnanian Enterprises, Inc. (HOV) and Meritage Homes Corporation (MTH) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOV and MTH?
On 3 years of weekly data the HOV/MTH correlation comes out at 0.73, strong. Little has changed lately, as the 1-year reading of 0.79 lands near the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 1934.3 %².
By 3-year correlation, MTH places #4 of the 21 assets tracked against HOV. Neither side won the trailing year by much: -9.3% against -7.0%. One caveat on sizing: HOV is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
HOV vs MTH: side by side
| HOV (Hovnanian Enterprises, Inc.) | MTH (Meritage Homes Corporation) | |
|---|---|---|
| 1-year return | -9.3% | -7.0% |
| 5-year return | +19.3% | +34.0% |
| Volatility (ann.) | 67.9% | 39.0% |
| Beta vs S&P 500 | 1.58 | 0.90 |
| Max drawdown (3Y) | -63.1% | -43.0% |
| Market cap | $0.7B | $4.6B |
| P/E (trailing) | 123.0 | 15.0 |
| Dividend yield | 0.00% | 2.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HOV | MTH |
|---|---|---|
| 2022 | -66.9% | -24.5% |
| 2023 | +269.8% | +90.5% |
| 2024 | -14.0% | -10.2% |
| 2025 | -27.1% | -12.3% |
| 2026 | +29.9% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HOV and MTH good diversifiers for each other?
Only partially. A correlation of 0.73 means HOV 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 HOV and MTH?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.79 over the last year and 0.71 over 5 years.
Is MTH a good diversifier for HOV?
Only partially. A correlation of 0.73 means HOV 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 0.73 mean?
On the −1 to +1 scale, 0.73 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/hov-vs-mth.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/hov-vs-mth/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HOV correlations · MTH correlations
