LGIH vs MTH: Correlation
LGI Homes, Inc. (LGIH) and Meritage Homes Corporation (MTH) show a very strong relationship: their 3-year correlation of weekly returns is 0.80.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and MTH?
Across a 3-year window, the weekly returns of LGIH and MTH correlate at 0.80, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.86) sits close to the 3-year figure. Stretching to 5 years gives 0.82, with an annualized covariance of 1652.8 %².
Few assets follow LGIH as closely as MTH, which ranks #1 of 16 tracked partners. Twelve-month performance is nearly a tie, at -9.4% for LGIH and -7.0% for MTH.
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 MTH: side by side
| LGIH (LGI Homes, Inc.) | MTH (Meritage Homes Corporation) | |
|---|---|---|
| 1-year return | -9.4% | -7.0% |
| 5-year return | -64.2% | +34.0% |
| Volatility (ann.) | 53.2% | 39.0% |
| Beta vs S&P 500 | 1.23 | 0.90 |
| Max drawdown (3Y) | -74.8% | -43.0% |
| Market cap | $1.3B | $4.6B |
| P/E (trailing) | 20.4 | 15.0 |
| Dividend yield | 0.00% | 2.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LGIH | MTH |
|---|---|---|
| 2022 | -40.1% | -24.5% |
| 2023 | +43.8% | +90.5% |
| 2024 | -32.9% | -10.2% |
| 2025 | -51.9% | -12.3% |
| 2026 | +32.7% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and MTH good diversifiers for each other?
No: a correlation of 0.80 means LGIH and MTH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between LGIH and MTH?
As of 2026-08-27, the correlation of weekly returns between LGIH and MTH is 0.80 over 3 years, 0.86 over 1 year and 0.82 over 5 years.
Is MTH a good diversifier for LGIH?
No: a correlation of 0.80 means LGIH and MTH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lgih-vs-mth.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lgih-vs-mth/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LGIH correlations · MTH correlations
