LGIH vs NVR: Correlation
Measured on weekly returns over the past three years, LGI Homes, Inc. (LGIH) and NVR, Inc. (NVR) carry a correlation of 0.71, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and NVR?
Across a 3-year window, the weekly returns of LGIH and NVR correlate at 0.71, strong. The relationship has been stable: the 1-year correlation (0.66) sits close to the 3-year figure. Stretching to 5 years gives 0.73, with an annualized covariance of 882.4 %².
Within LGIH's tracked universe of 16 assets, NVR comes in at #8 by 3-year correlation. Over the last 12 months LGIH came out ahead by 11.4 percentage points (-9.4% against -20.8%). Risk is not evenly split, since LGIH carries 2.3 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.
LGIH vs NVR: side by side
| LGIH (LGI Homes, Inc.) | NVR (NVR, Inc.) | |
|---|---|---|
| 1-year return | -9.4% | -20.8% |
| 5-year return | -64.2% | +24.2% |
| Volatility (ann.) | 53.2% | 23.4% |
| Beta vs S&P 500 | 1.23 | 0.53 |
| Max drawdown (3Y) | -74.8% | -43.9% |
| Market cap | $1.3B | $17.0B |
| P/E (trailing) | 20.4 | 16.6 |
| Dividend yield | 0.00% | 0.00% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | LGIH | NVR |
|---|---|---|
| 2022 | -40.1% | -21.9% |
| 2023 | +43.8% | +51.8% |
| 2024 | -32.9% | +16.8% |
| 2025 | -51.9% | -10.8% |
| 2026 | +32.7% | -12.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and NVR good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LGIH and NVR?
The LGIH/NVR correlation stands at 0.71 on a 3-year window (1 year: 0.66, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is NVR a good diversifier for LGIH?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.71 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/lgih-vs-nvr.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lgih-vs-nvr/)
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Related comparisons
Hubs: LGIH correlations · NVR correlations
