LGIH vs PHM: Correlation
Measured on weekly returns over the past three years, LGI Homes, Inc. (LGIH) and PulteGroup (PHM) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and PHM?
Across a 3-year window, the weekly returns of LGIH and PHM 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 0.80, with an annualized covariance of 1339.5 %².
In LGIH's tracked universe of 16 assets, PHM sits right near the top at #3. The trailing year gives PHM the advantage: -9.4% versus -2.5%, a 6.9-point spread. Risk is not evenly split, since LGIH carries 1.7 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 PHM: side by side
| LGIH (LGI Homes, Inc.) | PHM (PulteGroup) | |
|---|---|---|
| 1-year return | -9.4% | -2.5% |
| 5-year return | -64.2% | +145.5% |
| Volatility (ann.) | 53.2% | 32.2% |
| Beta vs S&P 500 | 1.23 | 0.82 |
| Max drawdown (3Y) | -74.8% | -38.0% |
| Market cap | $1.3B | – |
| P/E (trailing) | 20.4 | 13.3 |
| Dividend yield | 0.00% | 0.77% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | LGIH | PHM |
|---|---|---|
| 2022 | -40.1% | -19.2% |
| 2023 | +43.8% | +128.8% |
| 2024 | -32.9% | +6.2% |
| 2025 | -51.9% | +8.5% |
| 2026 | +32.7% | +8.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and PHM good diversifiers for each other?
Only partially. A correlation of 0.78 means LGIH and PHM 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 LGIH and PHM?
The LGIH/PHM correlation stands at 0.78 on a 3-year window (1 year: 0.78, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is PHM a good diversifier for LGIH?
Only partially. A correlation of 0.78 means LGIH and PHM 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/lgih-vs-phm.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lgih-vs-phm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LGIH correlations · PHM correlations
