LDI vs PFSI: Correlation
Measured on weekly returns over the past three years, loanDepot, Inc. (LDI) and PennyMac Financial Services, Inc. (PFSI) carry a correlation of 0.50, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LDI and PFSI?
Over the past 3 years, LDI and PFSI moved with a correlation of 0.50, which is moderate. Recent behaviour matches the longer record: 0.55 over 1 year against 0.50 over 3. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 1499.6 %².
In LDI's tracked universe of 13 assets, PFSI sits right near the top at #3. Correlation aside, the last 12 months split them widely, with PFSI ahead by 22.4 points (-53.7% versus -31.3%). Risk is not evenly split, since LDI carries 2.5 times the volatility of the other side.
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.
LDI vs PFSI: side by side
| LDI (loanDepot, Inc.) | PFSI (PennyMac Financial Services, Inc.) | |
|---|---|---|
| 1-year return | -53.7% | -31.3% |
| 5-year return | -87.7% | +17.5% |
| Volatility (ann.) | 85.9% | 34.9% |
| Beta vs S&P 500 | 1.47 | 0.57 |
| Max drawdown (3Y) | -81.3% | -53.8% |
| Market cap | $0.4B | $3.8B |
| P/E (trailing) | – | 10.0 |
| Dividend yield | 0.00% | 1.65% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LDI | PFSI |
|---|---|---|
| 2022 | -64.9% | -17.6% |
| 2023 | +113.3% | +57.8% |
| 2024 | -42.0% | +16.8% |
| 2025 | +1.5% | +30.5% |
| 2026 | -53.0% | -43.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LDI and PFSI good diversifiers for each other?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between LDI and PFSI?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.55 over the last year and 0.51 over 5 years.
Is PFSI a good diversifier for LDI?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.50 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/ldi-vs-pfsi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ldi-vs-pfsi/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LDI correlations · PFSI correlations
