HOV vs PHM: Correlation
How closely do Hovnanian Enterprises, Inc. (HOV) and PulteGroup (PHM) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOV and PHM?
On 3 years of weekly data the HOV/PHM correlation comes out at 0.75, strong. Recent behaviour matches the longer record: 0.77 over 1 year against 0.75 over 3. The 5-year figure is 0.76, and annualized covariance runs at 1647.8 %².
In HOV's tracked universe of 21 assets, PHM sits right near the top at #2. The trailing year gives PHM the advantage: -9.3% versus -2.5%, a 6.8-point spread. Note the risk asymmetry: HOV runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 PHM: side by side
| HOV (Hovnanian Enterprises, Inc.) | PHM (PulteGroup) | |
|---|---|---|
| 1-year return | -9.3% | -2.5% |
| 5-year return | +19.3% | +145.5% |
| Volatility (ann.) | 67.9% | 32.2% |
| Beta vs S&P 500 | 1.58 | 0.82 |
| Max drawdown (3Y) | -63.1% | -38.0% |
| Market cap | $0.7B | – |
| P/E (trailing) | 123.0 | 13.3 |
| Dividend yield | 0.00% | 0.77% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | HOV | PHM |
|---|---|---|
| 2022 | -66.9% | -19.2% |
| 2023 | +269.8% | +128.8% |
| 2024 | -14.0% | +6.2% |
| 2025 | -27.1% | +8.5% |
| 2026 | +29.9% | +8.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HOV and PHM good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HOV and PHM?
As of 2026-08-27, the correlation of weekly returns between HOV and PHM is 0.75 over 3 years, 0.77 over 1 year and 0.76 over 5 years.
Is PHM a good diversifier for HOV?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 mean?
A reading of 0.75 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: HOV correlations · PHM correlations
