AOS vs KBH: Correlation
Measured on weekly returns over the past three years, A. O. Smith (AOS) and KB Home (KBH) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and KBH?
Over the past 3 years, AOS and KBH moved with a correlation of 0.61, which is strong. The past 12 months show a tighter link (0.76) than the 3-year average (0.61). Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 514.6 %².
Within AOS's tracked universe of 33 assets, KBH comes in at #12 by 3-year correlation. Neither side won the trailing year by much: -12.6% against -12.1%. Note the risk asymmetry: KBH runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AOS vs KBH: side by side
| AOS (A. O. Smith) | KBH (KB Home) | |
|---|---|---|
| 1-year return | -12.6% | -12.1% |
| 5-year return | -6.7% | +37.4% |
| Volatility (ann.) | 23.5% | 35.8% |
| Beta vs S&P 500 | 0.67 | 0.78 |
| Max drawdown (3Y) | -36.9% | -48.3% |
| Market cap | $8.4B | – |
| P/E (trailing) | 17.4 | 13.6 |
| Dividend yield | 2.27% | 1.78% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | AOS | KBH |
|---|---|---|
| 2022 | -32.1% | -27.5% |
| 2023 | +46.7% | +99.0% |
| 2024 | -15.9% | +6.6% |
| 2025 | +0.1% | -12.7% |
| 2026 | -5.8% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and KBH good diversifiers for each other?
Only partially. A correlation of 0.61 means AOS and KBH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AOS and KBH?
The AOS/KBH correlation stands at 0.61 on a 3-year window (1 year: 0.76, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is KBH a good diversifier for AOS?
Only partially. A correlation of 0.61 means AOS and KBH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: AOS correlations · KBH correlations
