LEN vs LGIH: Correlation
Lennar (LEN) and LGI Homes, Inc. (LGIH) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LEN and LGIH?
Across a 3-year window, the weekly returns of LEN and LGIH correlate at 0.78, strong. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. Stretching to 5 years gives 0.81, with an annualized covariance of 1351.8 %².
Within LEN's tracked universe of 40 assets, LGIH comes in at #8 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months LGIH outperformed by 25.5 percentage points (-34.9% for LEN against -9.4% for LGIH). One caveat on sizing: LGIH is 1.6 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.
LEN vs LGIH: side by side
| LEN (Lennar) | LGIH (LGI Homes, Inc.) | |
|---|---|---|
| 1-year return | -34.9% | -9.4% |
| 5-year return | -11.7% | -64.2% |
| Volatility (ann.) | 32.6% | 53.2% |
| Beta vs S&P 500 | 0.84 | 1.23 |
| Max drawdown (3Y) | -54.5% | -74.8% |
| Market cap | $20.5B | $1.3B |
| P/E (trailing) | 13.7 | 20.4 |
| Dividend yield | 2.29% | 0.00% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | LEN | LGIH |
|---|---|---|
| 2022 | -20.6% | -40.1% |
| 2023 | +66.9% | +43.8% |
| 2024 | -7.3% | -32.9% |
| 2025 | -20.8% | -51.9% |
| 2026 | -15.9% | +32.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LEN and LGIH good diversifiers for each other?
Only partially. A correlation of 0.78 means LEN and LGIH 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 LEN and LGIH?
Using weekly returns as of 2026-08-27: 0.78 over 3 years, with 0.78 over the last year and 0.81 over 5 years.
Is LGIH a good diversifier for LEN?
Only partially. A correlation of 0.78 means LEN and LGIH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.78 mean?
A reading of 0.78 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/len-vs-lgih.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/len-vs-lgih/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LEN correlations · LGIH correlations
