LGI Homes Correlations

LGIH Stock

USD 111.22 5.40 5.10%

The current 90-days correlation between LGI Homes and Arhaus Inc is 0.58 (i.e., Very weak 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

Weak diversification

The correlation between LGI Homes and DJI is 0.37 (i.e., 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

0.69	VEEE	Twin Vee Powercats	Pair Corr
0.66	BZH	Beazer Homes USA	Pair Corr
0.84	CCS	Century Communities	Pair Corr
0.91	DFH	Dream Finders Homes	Pair Corr
0.73	DHI	DR Horton	Pair Corr
0.65	DTC	Solo Brands	Pair Corr
0.73	HAS	Hasbro Inc	Pair Corr
0.71	HOV	Hovnanian Enterprises Earnings Call Next Week	Pair Corr
0.77	IBP	Installed Building	Pair Corr
0.9	KBH	KB Home Fiscal Year End 8th of January 2025	Pair Corr
0.8	BRLT	Brilliant Earth Group	Pair Corr
0.68	CTHR	Charles Colvard	Pair Corr

Moving against LGI Stock

0.47	DOGZ	Dogness International Downward Rally	Pair Corr
0.38	VSTO	Vista Outdoor	Pair Corr
0.52	GM	General Motors Aggressive Push	Pair Corr
0.41	LULU	Lululemon Athletica	Pair Corr
0.37	JRSH	Jerash Holdings	Pair Corr
0.37	BH	Biglari Holdings	Pair Corr

Related Correlations Analysis

	ARHS	FND	HVT-A	KGFHF	HVT	KIRK	TTSH	HD	LOW
ARHS		0.74	-0.2	-0.05	0.84	0.21	-0.39	-0.48	-0.5	ARHS
FND	0.74		-0.38	0.38	0.76	0.64	-0.03	0.06	0.04	FND
HVT-A	-0.2	-0.38		-0.24	-0.13	-0.36	-0.05	-0.24	-0.18	HVT-A
KGFHF	-0.05	0.38	-0.24		0.27	0.78	0.38	0.51	0.59	KGFHF
HVT	0.84	0.76	-0.13	0.27		0.44	-0.4	-0.34	-0.31	HVT
KIRK	0.21	0.64	-0.36	0.78	0.44		0.38	0.56	0.59	KIRK
TTSH	-0.39	-0.03	-0.05	0.38	-0.4	0.38		0.67	0.74	TTSH
HD	-0.48	0.06	-0.24	0.51	-0.34	0.56	0.67		0.96	HD
LOW	-0.5	0.04	-0.18	0.59	-0.31	0.59	0.74	0.96		LOW
	ARHS	FND	HVT-A	KGFHF	HVT	KIRK	TTSH	HD	LOW

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

LOW	+ 0.96	HD
HVT	+ 0.84	ARHS
KIRK	+ 0.78	KGFHF
HVT	+ 0.76	FND
FND	+ 0.74	ARHS
LOW	+ 0.74	TTSH

High negative correlations

LOW	- 0.5	ARHS
HD	- 0.48	ARHS
TTSH	- 0.4	HVT
TTSH	- 0.39	ARHS
HVT-A	- 0.38	FND
KIRK	- 0.36	HVT-A

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
ARHS	2.24	(0.45)	0.00	(0.15)	0.00	0.00	6.36	(4.96)	19.97
FND	1.65	0.06	(0.01)	0.39	2.18	(1.70)	4.11	(3.94)	12.54
HVT-A	1.77	(0.27)	0.00	38.63	0.00	0.00	4.79	(6.64)	18.61
KGFHF	2.00	0.10	0.00	0.45	2.71	(4.28)	7.83	(5.63)	32.82
HVT	1.75	(0.31)	0.00	(0.10)	0.00	0.00	4.40	(3.20)	13.87
KIRK	3.08	(0.04)	0.01	0.10	3.28	(3.69)	6.03	(6.17)	22.39
TTSH	1.45	0.06	0.05	0.16	1.72	(1.66)	3.03	(3.00)	12.09
HD	0.94	0.18	0.09	0.66	0.90	(1.08)	2.33	(1.67)	5.73
LOW	0.95	0.11	0.02	0.40	1.20	(0.97)	1.80	(1.70)	8.67

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 CPA	CFO Treasurer	Profile
	Charles Merdian	CFO, Treasurer and Secretary	Profile

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