DHI vs KBH: Correlation
D. R. Horton (DHI) and KB Home (KBH) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DHI and KBH?
Over the past 3 years, DHI and KBH moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.85) sits close to the 3-year figure. Over 5 years the correlation is 0.84, and the annualized covariance of weekly returns is 1024.6 %².
KBH is one of the assets that tracks DHI most closely: it ranks #3 out of the 31 assets we track against DHI. Their 12-month results are close: -12.2% for DHI against -12.1% for KBH.
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.
DHI vs KBH: side by side
| DHI (D. R. Horton) | KBH (KB Home) | |
|---|---|---|
| 1-year return | -12.2% | -12.1% |
| 5-year return | +59.2% | +37.4% |
| Volatility (ann.) | 33.5% | 35.8% |
| Beta vs S&P 500 | 0.79 | 0.78 |
| Max drawdown (3Y) | -41.3% | -48.3% |
| Market cap | $40.6B | – |
| P/E (trailing) | 14.2 | 13.6 |
| Dividend yield | 1.17% | 1.78% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | DHI | KBH |
|---|---|---|
| 2022 | -16.8% | -27.5% |
| 2023 | +72.1% | +99.0% |
| 2024 | -7.2% | +6.6% |
| 2025 | +4.2% | -12.7% |
| 2026 | +1.8% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DHI and KBH good diversifiers for each other?
No: a correlation of 0.86 means DHI and KBH tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DHI and KBH?
The DHI/KBH correlation stands at 0.86 on a 3-year window (1 year: 0.85, 5 years: 0.84), computed from weekly returns as of 2026-08-27.
Is KBH a good diversifier for DHI?
No: a correlation of 0.86 means DHI and KBH tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 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: DHI correlations · KBH correlations
