LGIH vs MHO: Correlation
Measured on weekly returns over the past three years, LGI Homes, Inc. (LGIH) and M/I Homes, Inc. (MHO) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and MHO?
Over the past 3 years, LGIH and MHO moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.80 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 1542.7 %².
Among the 16 assets we track against LGIH, MHO ranks #5 by 3-year correlation. Over the last 12 months MHO came out ahead by 12.8 percentage points (-9.4% against +3.4%).
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.
LGIH vs MHO: side by side
| LGIH (LGI Homes, Inc.) | MHO (M/I Homes, Inc.) | |
|---|---|---|
| 1-year return | -9.4% | +3.4% |
| 5-year return | -64.2% | +131.4% |
| Volatility (ann.) | 53.2% | 38.2% |
| Beta vs S&P 500 | 1.23 | 0.92 |
| Max drawdown (3Y) | -74.8% | -40.6% |
| Market cap | $1.3B | $3.8B |
| P/E (trailing) | 20.4 | 12.8 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LGIH | MHO |
|---|---|---|
| 2022 | -40.1% | -25.7% |
| 2023 | +43.8% | +198.3% |
| 2024 | -32.9% | -3.5% |
| 2025 | -51.9% | -3.8% |
| 2026 | +32.7% | +18.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and MHO good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LGIH and MHO?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.80 over the last year and 0.78 over 5 years.
Is MHO a good diversifier for LGIH?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 mean?
A reading of 0.76 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
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Related comparisons
Hubs: LGIH correlations · MHO correlations
