CME vs KBH: Correlation
CME Group (CME) and KB Home (KBH) show a negative relationship: their 3-year correlation of weekly returns is -0.24.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CME and KBH?
Across a 3-year window, the weekly returns of CME and KBH correlate at -0.24, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.37 versus -0.24 over 3 years. Stretching to 5 years gives -0.06, with an annualized covariance of -173.4 %².
By 3-year correlation, KBH places #38 of the 47 assets tracked against CME. Their recent paths diverged sharply: over the last 12 months CME outperformed by 20.2 percentage points (+8.1% for CME against -12.1% for KBH). One caveat on sizing: KBH is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
CME vs KBH: side by side
| CME (CME Group) | KBH (KB Home) | |
|---|---|---|
| 1-year return | +8.1% | -12.1% |
| 5-year return | +73.9% | +37.4% |
| Volatility (ann.) | 20.0% | 35.8% |
| Beta vs S&P 500 | 0.12 | 0.78 |
| Max drawdown (3Y) | -31.1% | -48.3% |
| Market cap | $101.0B | – |
| P/E (trailing) | 23.8 | 13.6 |
| Dividend yield | 1.82% | 1.78% |
| Sector / category | Financials | US Listed |
Year-by-year returns
| Year | CME | KBH |
|---|---|---|
| 2022 | -22.9% | -27.5% |
| 2023 | +31.3% | +99.0% |
| 2024 | +15.4% | +6.6% |
| 2025 | +19.8% | -12.7% |
| 2026 | +5.9% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CME and KBH good diversifiers for each other?
Yes: at -0.24, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CME and KBH?
As of 2026-08-27, the correlation of weekly returns between CME and KBH is -0.24 over 3 years, -0.37 over 1 year and -0.06 over 5 years.
Is KBH a good diversifier for CME?
Yes: at -0.24, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.24 mean?
A reading of -0.24 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: CME correlations · KBH correlations
