Hovnanian Enterprises Correlations

HOV Stock  USD 121.85  14.24  13.23%   
The current 90-days correlation between Hovnanian Enterprises and KB Home is 0.86 (i.e., Very poor diversification). The correlation of Hovnanian Enterprises 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Hovnanian Enterprises Correlation With Market

Weak diversification

The correlation between Hovnanian Enterprises and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hovnanian Enterprises and DJI in the same portfolio, assuming nothing else is changed.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hovnanian Enterprises. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
For more information on how to buy Hovnanian Stock please use our How to Invest in Hovnanian Enterprises guide.

Moving together with Hovnanian Stock

  0.85BZH Beazer Homes USA Earnings Call Next WeekPairCorr
  0.94CCS Century CommunitiesPairCorr
  0.7DFH Dream Finders Homes Earnings Call Next WeekPairCorr
  0.7DHI DR HortonPairCorr
  0.86IBP Installed Building Earnings Call Next WeekPairCorr
  0.85KBH KB HomePairCorr
  0.87LEN LennarPairCorr
  0.93MTH MeritagePairCorr
  0.9NVR NVR IncPairCorr
  0.93PHM PulteGroupPairCorr
  0.82TOL Toll BrothersPairCorr
  0.72TPH TRI Pointe HomesPairCorr
  0.92GRBK Green Brick Partners Earnings Call This WeekPairCorr
  0.67HOVNP Hovnanian Enterprises PFDPairCorr
  0.66ONEG OneConstruction GroupPairCorr
  0.69TMHC Taylor Morn HomePairCorr
  0.81F Ford Motor Earnings Call This WeekPairCorr
  0.72M Macys Inc Earnings Call This WeekPairCorr
  0.73AN AutoNation Earnings Call This WeekPairCorr
  0.63EM Smart Share GlobalPairCorr
  0.67GM General MotorsPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Hovnanian Stock performing well and Hovnanian Enterprises 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 Hovnanian Enterprises' 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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
TMHC  1.69 (0.07) 0.00  0.16  1.75 
 4.52 
 9.51 
KBH  1.83 (0.11)(0.02) 0.12  2.08 
 4.02 
 8.51 
MHO  1.81  0.31  0.03 (1.67) 2.03 
 4.02 
 9.75 
CCS  1.99 (0.03) 0.02  0.18  2.18 
 4.30 
 11.30 
LEN  1.70 (0.10)(0.02) 0.12  1.94 
 3.95 
 9.04 
PHM  1.65  0.04  0.04  0.24  1.65 
 3.97 
 8.78 
BZH  2.04  0.22  0.11  0.38  2.04 
 5.28 
 14.51 
DHI  1.82  0.08  0.07  0.27  1.72 
 3.86 
 9.97 
MTH  1.97 (0.10)(0.01) 0.13  2.23 
 4.76 
 10.83 
TPH  1.58  0.00  0.04  0.21  1.61 
 4.60 
 8.80