Dream Finders Correlations

DFH Stock

USD 23.44 1.29 5.22%

The current 90-days correlation between Dream Finders Homes and Hovnanian Enterprises is 0.58 (i.e., Very weak diversification). The correlation of Dream Finders 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.

Dream Finders Correlation With Market

Weak diversification

The correlation between Dream Finders Homes and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dream Finders Homes and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dream Finders 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 census.

Moving against Dream Stock

0.45	VNCE	Vince Holding Corp	Pair Corr
0.52	DRI	Darden Restaurants	Pair Corr
0.45	DDS	Dillards	Pair Corr
0.45	FATBB	FAT Brands	Pair Corr
0.4	EWCZ	European Wax Center	Pair Corr

Related Correlations Analysis

	HOV	TMHC	KBH	MHO	CCS	TPH	BZH	LGIH	IBP	CVCO
HOV		0.64	0.88	0.76	0.85	0.9	0.79	0.95	0.72	-0.43	HOV
TMHC	0.64		0.74	0.45	0.74	0.64	0.44	0.63	0.84	0.06	TMHC
KBH	0.88	0.74		0.86	0.93	0.93	0.81	0.94	0.82	-0.44	KBH
MHO	0.76	0.45	0.86		0.79	0.81	0.93	0.87	0.61	-0.69	MHO
CCS	0.85	0.74	0.93	0.79		0.84	0.71	0.88	0.8	-0.23	CCS
TPH	0.9	0.64	0.93	0.81	0.84		0.79	0.95	0.78	-0.55	TPH
BZH	0.79	0.44	0.81	0.93	0.71	0.79		0.88	0.52	-0.73	BZH
LGIH	0.95	0.63	0.94	0.87	0.88	0.95	0.88		0.73	-0.57	LGIH
IBP	0.72	0.84	0.82	0.61	0.8	0.78	0.52	0.73		-0.2	IBP
CVCO	-0.43	0.06	-0.44	-0.69	-0.23	-0.55	-0.73	-0.57	-0.2		CVCO
	HOV	TMHC	KBH	MHO	CCS	TPH	BZH	LGIH	IBP	CVCO

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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

LGIH	+ 0.95	HOV
LGIH	+ 0.95	TPH
LGIH	+ 0.94	KBH
CCS	+ 0.93	KBH
TPH	+ 0.93	KBH
BZH	+ 0.93	MHO

High negative correlations

CVCO	- 0.73	BZH
CVCO	- 0.69	MHO
CVCO	- 0.57	LGIH
CVCO	- 0.55	TPH
CVCO	- 0.44	KBH
CVCO	- 0.43	HOV

Risk-Adjusted Indicators

There is a big difference between Dream Stock performing well and Dream Finders 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 Dream Finders' 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
HOV	2.54	(0.42)	0.00	(0.31)	0.00	0.00	4.35	(4.91)	23.60
TMHC	1.54	(0.05)	0.00	(0.12)	0.00	0.00	3.35	(3.11)	8.18
KBH	1.48	(0.20)	0.00	(0.32)	0.00	0.00	3.40	(2.50)	9.30
MHO	1.66	(0.34)	0.00	(0.45)	0.00	0.00	2.61	(3.53)	10.34
CCS	1.73	(0.19)	0.00	(0.27)	0.00	0.00	4.10	(3.25)	8.95
TPH	1.62	(0.25)	0.00	(0.34)	0.00	0.00	3.08	(3.26)	14.22
BZH	2.26	(0.40)	0.00	(0.34)	0.00	0.00	3.76	(3.75)	24.99
LGIH	1.96	(0.42)	0.00	(0.41)	0.00	0.00	3.32	(4.15)	10.51
IBP	1.76	(0.10)	0.00	(0.15)	0.00	0.00	3.74	(4.87)	12.76
CVCO	1.55	0.17	0.10	0.09	1.59	(1.81)	3.59	(2.30)	9.62

Dream Finders Corporate Management

Esq Riva	General VP	Profile
John Moran	Chief Officer	Profile
Brad Muston	Division Division	Profile
Batey McGraw	National Land	Profile

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