MTH vs VEL: Correlation
How closely do Meritage Homes Corporation (MTH) and Velocity Financial, Inc. (VEL) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTH and VEL?
Across a 3-year window, the weekly returns of MTH and VEL correlate at 0.43, moderate. The relationship has been stable: the 1-year correlation (0.34) sits close to the 3-year figure. Stretching to 5 years gives 0.34, with an annualized covariance of 434.3 %².
By 3-year correlation, VEL places #28 of the 35 assets tracked against MTH. Neither side won the trailing year by much: -7.0% against -5.1%. Note the risk asymmetry: MTH runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VEL: side by side
| MTH (Meritage Homes Corporation) | VEL (Velocity Financial, Inc.) | |
|---|---|---|
| 1-year return | -7.0% | -5.1% |
| 5-year return | +34.0% | +41.6% |
| Volatility (ann.) | 39.0% | 25.6% |
| Beta vs S&P 500 | 0.90 | 0.42 |
| Max drawdown (3Y) | -43.0% | -22.1% |
| Market cap | $4.6B | $0.7B |
| P/E (trailing) | 15.0 | 6.4 |
| Dividend yield | 2.52% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | MTH | VEL |
|---|---|---|
| 2022 | -24.5% | -29.6% |
| 2023 | +90.5% | +78.4% |
| 2024 | -10.2% | +13.6% |
| 2025 | -12.3% | +6.1% |
| 2026 | +8.7% | -12.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MTH and VEL good diversifiers for each other?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MTH and VEL?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.34 over the last year and 0.34 over 5 years.
Is VEL a good diversifier for MTH?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.43 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-vel.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mth-vs-vel/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MTH correlations · VEL correlations
