LGIH vs UFPI: Correlation
LGI Homes, Inc. (LGIH) and UFP Industries, Inc. (UFPI) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGIH and UFPI?
On 3 years of weekly data the LGIH/UFPI correlation comes out at 0.72, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 1127.7 %².
Among the 16 assets we track against LGIH, UFPI ranks #7 by 3-year correlation. The trailing year gives LGIH the advantage: -9.4% versus -16.1%, a 6.7-point spread. Risk is not evenly split, since LGIH carries 1.8 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 UFPI: side by side
| LGIH (LGI Homes, Inc.) | UFPI (UFP Industries, Inc.) | |
|---|---|---|
| 1-year return | -9.4% | -16.1% |
| 5-year return | -64.2% | +16.0% |
| Volatility (ann.) | 53.2% | 29.4% |
| Beta vs S&P 500 | 1.23 | 0.82 |
| Max drawdown (3Y) | -74.8% | -41.9% |
| Market cap | $1.3B | $4.7B |
| P/E (trailing) | 20.4 | 19.7 |
| Dividend yield | 0.00% | 1.64% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LGIH | UFPI |
|---|---|---|
| 2022 | -40.1% | -12.9% |
| 2023 | +43.8% | +60.3% |
| 2024 | -32.9% | -9.3% |
| 2025 | -51.9% | -18.0% |
| 2026 | +32.7% | -5.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGIH and UFPI good diversifiers for each other?
To a limited degree. At 0.72 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between LGIH and UFPI?
The LGIH/UFPI correlation stands at 0.72 on a 3-year window (1 year: 0.70, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is UFPI a good diversifier for LGIH?
To a limited degree. At 0.72 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.72 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-ufpi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lgih-vs-ufpi/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LGIH correlations · UFPI correlations
