MTH vs SHW: Correlation
Measured on weekly returns over the past three years, Meritage Homes Corporation (MTH) and Sherwin-Williams (SHW) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTH and SHW?
Across a 3-year window, the weekly returns of MTH and SHW correlate at 0.67, strong. The relationship has been stable: the 1-year correlation (0.73) sits close to the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 642.4 %².
Within MTH's tracked universe of 35 assets, SHW comes in at #18 by 3-year correlation. Their 12-month results are close: -7.0% for MTH against -5.1% for SHW. 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.
MTH vs SHW: side by side
| MTH (Meritage Homes Corporation) | SHW (Sherwin-Williams) | |
|---|---|---|
| 1-year return | -7.0% | -5.1% |
| 5-year return | +34.0% | +18.3% |
| Volatility (ann.) | 39.0% | 24.6% |
| Beta vs S&P 500 | 0.90 | 0.79 |
| Max drawdown (3Y) | -43.0% | -25.7% |
| Market cap | $4.6B | $83.8B |
| P/E (trailing) | 15.0 | 31.8 |
| Dividend yield | 2.52% | 0.91% |
| Sector / category | US Listed | Materials |
Year-by-year returns
| Year | MTH | SHW |
|---|---|---|
| 2022 | -24.5% | -32.0% |
| 2023 | +90.5% | +32.7% |
| 2024 | -10.2% | +9.9% |
| 2025 | -12.3% | -3.8% |
| 2026 | +8.7% | +7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTH and SHW good diversifiers for each other?
Only partially. A correlation of 0.67 means MTH and SHW 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 MTH and SHW?
The MTH/SHW correlation stands at 0.67 on a 3-year window (1 year: 0.73, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is SHW a good diversifier for MTH?
Only partially. A correlation of 0.67 means MTH and SHW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/mth-vs-shw.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mth-vs-shw/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MTH correlations · SHW correlations
