LPX vs TREX: Correlation
Measured on weekly returns over the past three years, Louisiana-Pacific Corporation (LPX) and Trex Company, Inc. (TREX) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LPX and TREX?
On 3 years of weekly data the LPX/TREX correlation comes out at 0.64, strong. Little has changed lately, as the 1-year reading of 0.71 lands near the 3-year figure. The 5-year figure is 0.58, and annualized covariance runs at 1090.3 %².
Among the 20 assets we track against LPX, TREX ranks #9 by 3-year correlation. Their 12-month results are close: -25.3% for LPX against -27.3% for TREX.
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.
LPX vs TREX: side by side
| LPX (Louisiana-Pacific Corporation) | TREX (Trex Company, Inc.) | |
|---|---|---|
| 1-year return | -25.3% | -27.3% |
| 5-year return | +15.9% | -58.7% |
| Volatility (ann.) | 37.4% | 45.3% |
| Beta vs S&P 500 | 1.15 | 1.48 |
| Max drawdown (3Y) | -43.1% | -69.9% |
| Market cap | $4.9B | $4.7B |
| P/E (trailing) | 93.1 | 27.4 |
| Dividend yield | 1.63% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | LPX | TREX |
|---|---|---|
| 2022 | -23.4% | -68.7% |
| 2023 | +21.5% | +95.6% |
| 2024 | +47.9% | -16.6% |
| 2025 | -21.0% | -49.2% |
| 2026 | -11.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LPX and TREX good diversifiers for each other?
Only partially. A correlation of 0.64 means LPX and TREX 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 LPX and TREX?
The LPX/TREX correlation stands at 0.64 on a 3-year window (1 year: 0.71, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is TREX a good diversifier for LPX?
Only partially. A correlation of 0.64 means LPX and TREX share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
On the −1 to +1 scale, 0.64 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lpx-vs-trex.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lpx-vs-trex/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LPX correlations · TREX correlations
