LGIH vs SPY: Correlation
How closely do LGI Homes, Inc. (LGIH) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and SPY?
Over the past 3 years, LGIH and SPY moved with a correlation of 0.33, which is moderate. The link has loosened recently: the 1-year correlation (0.17) runs below the 3-year figure (0.33). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 256.1 %².
Among the 16 assets we track against LGIH, SPY sits near the bottom by co-movement, at rank #12. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 30.0 percentage points (-9.4% for LGIH against +20.6% for SPY). Risk is not evenly split, since LGIH carries 3.7 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 SPY: side by side
| LGIH (LGI Homes, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -9.4% | +20.6% |
| 5-year return | -64.2% | +82.4% |
| Volatility (ann.) | 53.2% | 14.5% |
| Beta vs S&P 500 | 1.23 | 1.00 |
| Max drawdown (3Y) | -74.8% | -18.8% |
| Market cap | $1.3B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | LGIH | SPY |
|---|---|---|
| 2022 | -40.1% | -18.2% |
| 2023 | +43.8% | +26.2% |
| 2024 | -32.9% | +24.9% |
| 2025 | -51.9% | +17.7% |
| 2026 | +32.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and SPY good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LGIH and SPY?
The LGIH/SPY correlation stands at 0.33 on a 3-year window (1 year: 0.17, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for LGIH?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.33 mean?
On the −1 to +1 scale, 0.33 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.
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Related comparisons
Hubs: LGIH correlations · SPY correlations
