IBP vs TOL: Correlation
How closely do Installed Building Products, Inc. (IBP) and Toll Brothers, Inc. (TOL) 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 IBP and TOL?
Across a 3-year window, the weekly returns of IBP and TOL correlate at 0.73, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Stretching to 5 years gives 0.74, with an annualized covariance of 1164.9 %².
Few assets follow IBP as closely as TOL, which ranks #2 of 17 tracked partners. Their recent paths diverged sharply: over the last 12 months TOL outperformed by 15.3 percentage points (-9.3% for IBP against +6.0% for TOL).
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.
IBP vs TOL: side by side
| IBP (Installed Building Products, Inc.) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -9.3% | +6.0% |
| 5-year return | +107.4% | +139.9% |
| Volatility (ann.) | 45.9% | 34.9% |
| Beta vs S&P 500 | 1.13 | 1.14 |
| Max drawdown (3Y) | -42.7% | -46.0% |
| Market cap | $6.4B | $13.4B |
| P/E (trailing) | 26.5 | 11.9 |
| Dividend yield | 0.62% | 0.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IBP | TOL |
|---|---|---|
| 2022 | -37.3% | -30.0% |
| 2023 | +117.6% | +108.6% |
| 2024 | -2.9% | +23.4% |
| 2025 | +50.6% | +8.3% |
| 2026 | -6.2% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBP and TOL good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBP and TOL?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.64 over the last year and 0.74 over 5 years.
Is TOL a good diversifier for IBP?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibp-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibp-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBP correlations · TOL correlations
