MTH vs SDHC: Correlation
Measured on weekly returns over the past three years, Meritage Homes Corporation (MTH) and Smith Douglas Homes Corp. (SDHC) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTH and SDHC?
On 3 years of weekly data the MTH/SDHC correlation comes out at 0.66, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 1250.6 %².
By 3-year correlation, SDHC places #19 of the 35 assets tracked against MTH. Their recent paths diverged sharply: over the last 12 months MTH outperformed by 31.3 percentage points (-7.0% for MTH against -38.3% for SDHC).
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.
MTH vs SDHC: side by side
| MTH (Meritage Homes Corporation) | SDHC (Smith Douglas Homes Corp.) | |
|---|---|---|
| 1-year return | -7.0% | -38.3% |
| 5-year return | +34.0% | n/a |
| Volatility (ann.) | 39.0% | 49.6% |
| Beta vs S&P 500 | 0.90 | 1.07 |
| Max drawdown (3Y) | -43.0% | -72.0% |
| Market cap | $4.6B | $0.1B |
| P/E (trailing) | 15.0 | 16.9 |
| Dividend yield | 2.52% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MTH | SDHC |
|---|---|---|
| 2022 | -24.5% | – |
| 2023 | +90.5% | – |
| 2024 | -10.2% | – |
| 2025 | -12.3% | -34.6% |
| 2026 | +8.7% | -27.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTH and SDHC good diversifiers for each other?
To a limited degree. At 0.66 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 MTH and SDHC?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.68 over the last year and n/a over 5 years.
Is SDHC a good diversifier for MTH?
To a limited degree. At 0.66 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 0.66 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/mth-vs-sdhc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mth-vs-sdhc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MTH correlations · SDHC correlations
