LGI Homes Correlations

LGIH Stock

USD 102.80 1.40 1.34%

The current 90-days correlation between LGI Homes and MI Homes is 0.73 (i.e., Poor diversification). The correlation of LGI Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

LGI Homes Correlation With Market

Very weak diversification

The correlation between LGI Homes and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding LGI Homes and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LGI Homes. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.

Moving together with LGI Stock

0.68	VNCE	Vince Holding Corp	Pair Corr
0.86	BZH	Beazer Homes USA Fiscal Year End 21st of November 2024	Pair Corr
0.81	DHI	DR Horton Fiscal Year End 5th of November 2024	Pair Corr
0.65	HOV	Hovnanian Enterprises	Pair Corr
0.68	IBP	Installed Building	Pair Corr
0.85	KBH	KB Home Fiscal Year End 8th of January 2025	Pair Corr
0.89	LEN	Lennar Fiscal Year End 12th of December 2024	Pair Corr
0.92	MTH	Meritage Earnings Call Tomorrow	Pair Corr
0.71	NVR	NVR Inc	Pair Corr
0.85	PHM	PulteGroup	Pair Corr
0.81	TOL	Toll Brothers Fiscal Year End 3rd of December 2024	Pair Corr

Moving against LGI Stock

0.46	NWTN	NWTN Class B	Pair Corr
0.31	RIVN	Rivian Automotive Aggressive Push	Pair Corr
0.37	BA	Boeing Sell-off Trend	Pair Corr

Related Correlations Analysis

	MHO	TMHC	TPH	BZH	CCS	CVCO	LEGH	MTH	KBH
MHO		0.97	0.89	0.94	0.88	0.95	0.67	0.92	0.74	MHO
TMHC	0.97		0.83	0.92	0.83	0.94	0.62	0.9	0.73	TMHC
TPH	0.89	0.83		0.87	0.93	0.78	0.76	0.92	0.81	TPH
BZH	0.94	0.92	0.87		0.89	0.91	0.73	0.92	0.76	BZH
CCS	0.88	0.83	0.93	0.89		0.77	0.88	0.97	0.91	CCS
CVCO	0.95	0.94	0.78	0.91	0.77		0.57	0.84	0.63	CVCO
LEGH	0.67	0.62	0.76	0.73	0.88	0.57		0.82	0.89	LEGH
MTH	0.92	0.9	0.92	0.92	0.97	0.84	0.82		0.89	MTH
KBH	0.74	0.73	0.81	0.76	0.91	0.63	0.89	0.89		KBH
	MHO	TMHC	TPH	BZH	CCS	CVCO	LEGH	MTH	KBH

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Risk-Adjusted Indicators

There is a big difference between LGI Stock performing well and LGI Homes Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze LGI Homes' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
MHO	1.81	(0.13)	(0.03)	0.00	2.55	(1.68)	4.51	(4.51)	11.04
TMHC	1.54	(0.03)	0.00	0.06	2.03	(1.59)	3.10	(4.14)	9.89
TPH	1.48	(0.29)	0.00	(0.10)	0.00	0.00	2.86	(3.73)	10.14
BZH	2.05	(0.23)	0.00	(0.02)	0.00	0.00	4.48	(5.16)	16.10
CCS	1.79	(0.26)	0.00	(0.07)	0.00	0.00	3.75	(4.05)	13.05
CVCO	1.57	(0.08)	(0.01)	0.03	1.98	(1.68)	3.88	(3.92)	9.71
LEGH	1.57	(0.21)	0.00	(0.06)	0.00	0.00	3.57	(3.12)	9.53
MTH	1.66	(0.20)	0.00	(0.03)	0.00	0.00	4.09	(4.85)	11.87
KBH	1.70	(0.18)	0.00	(0.03)	0.00	0.00	3.43	(3.66)	10.31

LGI Homes Corporate Executives

Elected by the shareholders, the LGI Homes' board of directors comprises two types of representatives: LGI Homes inside directors who are chosen from within the company, and outside directors, selected externally and held independent of LGI. The board's role is to monitor LGI Homes' management team and ensure that shareholders' interests are well served. LGI Homes' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, LGI Homes' outside directors are responsible for providing unbiased perspectives on the board's policies.

Charles Merdian

CFO, Treasurer and Secretary

Profile

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC