MTH vs TOL: Correlation
How closely do Meritage Homes Corporation (MTH) and Toll Brothers, Inc. (TOL) trade together? Their weekly returns over three years give a correlation of 0.86, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTH and TOL?
Over the past 3 years, MTH and TOL moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.88) sits close to the 3-year figure. Over 5 years the correlation is 0.86, and the annualized covariance of weekly returns is 1169.5 %².
By 3-year correlation, TOL places #4 of the 35 assets tracked against MTH. On 12-month performance TOL holds a 13.0-point edge, -7.0% against +6.0%.
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 TOL: side by side
| MTH (Meritage Homes Corporation) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -7.0% | +6.0% |
| 5-year return | +34.0% | +139.9% |
| Volatility (ann.) | 39.0% | 34.9% |
| Beta vs S&P 500 | 0.90 | 1.14 |
| Max drawdown (3Y) | -43.0% | -46.0% |
| Market cap | $4.6B | $13.4B |
| P/E (trailing) | 15.0 | 11.9 |
| Dividend yield | 2.52% | 0.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MTH | TOL |
|---|---|---|
| 2022 | -24.5% | -30.0% |
| 2023 | +90.5% | +108.6% |
| 2024 | -10.2% | +23.4% |
| 2025 | -12.3% | +8.3% |
| 2026 | +8.7% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTH and TOL good diversifiers for each other?
No: a correlation of 0.86 means MTH and TOL tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between MTH and TOL?
As of 2026-08-27, the correlation of weekly returns between MTH and TOL is 0.86 over 3 years, 0.88 over 1 year and 0.86 over 5 years.
Is TOL a good diversifier for MTH?
No: a correlation of 0.86 means MTH and TOL tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 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-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mth-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MTH correlations · TOL correlations
