LEN vs TOL: Correlation
How closely do Lennar (LEN) and Toll Brothers, Inc. (TOL) trade together? Their weekly returns over three years give a correlation of 0.84, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LEN and TOL?
Over the past 3 years, LEN and TOL moved with a correlation of 0.84, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.81 lands near the 3-year figure. Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 954.7 %².
Among the 40 assets we track against LEN, TOL ranks #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TOL ahead by 40.9 points (-34.9% versus +6.0%).
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 TOL: side by side
| LEN (Lennar) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -34.9% | +6.0% |
| 5-year return | -11.7% | +139.9% |
| Volatility (ann.) | 32.6% | 34.9% |
| Beta vs S&P 500 | 0.84 | 1.14 |
| Max drawdown (3Y) | -54.5% | -46.0% |
| Market cap | $20.5B | $13.4B |
| P/E (trailing) | 13.7 | 11.9 |
| Dividend yield | 2.29% | 0.69% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | LEN | TOL |
|---|---|---|
| 2022 | -20.6% | -30.0% |
| 2023 | +66.9% | +108.6% |
| 2024 | -7.3% | +23.4% |
| 2025 | -20.8% | +8.3% |
| 2026 | -15.9% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LEN and TOL good diversifiers for each other?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between LEN and TOL?
The LEN/TOL correlation stands at 0.84 on a 3-year window (1 year: 0.81, 5 years: 0.85), computed from weekly returns as of 2026-08-27.
Is TOL a good diversifier for LEN?
Not really. At 0.84, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.84 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/len-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/len-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LEN correlations · TOL correlations
