LOW vs MTH: Correlation
Measured on weekly returns over the past three years, Lowe's (LOW) and Meritage Homes Corporation (MTH) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LOW and MTH?
Across a 3-year window, the weekly returns of LOW and MTH correlate at 0.68, strong. Little has changed lately, as the 1-year reading of 0.73 lands near the 3-year figure. Stretching to 5 years gives 0.65, with an annualized covariance of 655.4 %².
Among the 46 assets we track against LOW, MTH ranks #14 by 3-year correlation. The trailing year gives MTH the advantage: -18.4% versus -7.0%, a 11.4-point spread. Risk is not evenly split, since MTH carries 1.6 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.
LOW vs MTH: side by side
| LOW (Lowe's) | MTH (Meritage Homes Corporation) | |
|---|---|---|
| 1-year return | -18.4% | -7.0% |
| 5-year return | +11.1% | +34.0% |
| Volatility (ann.) | 24.8% | 39.0% |
| Beta vs S&P 500 | 0.83 | 0.90 |
| Max drawdown (3Y) | -29.0% | -43.0% |
| Market cap | – | $4.6B |
| P/E (trailing) | 17.8 | 15.0 |
| Dividend yield | 2.31% | 2.52% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | LOW | MTH |
|---|---|---|
| 2022 | -21.5% | -24.5% |
| 2023 | +14.0% | +90.5% |
| 2024 | +13.0% | -10.2% |
| 2025 | -0.3% | -12.3% |
| 2026 | -12.9% | +8.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LOW and MTH good diversifiers for each other?
Only partially. A correlation of 0.68 means LOW and MTH 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 LOW and MTH?
The LOW/MTH correlation stands at 0.68 on a 3-year window (1 year: 0.73, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is MTH a good diversifier for LOW?
Only partially. A correlation of 0.68 means LOW and MTH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
A reading of 0.68 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/low-vs-mth.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: LOW correlations · MTH correlations
