Do you know how many components make up the index for homebuilders? I was only able to locate the Philadelphia Housing Index, which consists of 20 individual issues.
Based on the PHI, I’m not sure I would draw the same conclusion as you from the comparison of the homebuilder index to the Nasdaq 100.
Wouldn’t you expect an index consisting of fewer components and a narrower focus to show more volatility than a more diverse group of stocks?
