HOV vs KBH: Correlation
Measured on weekly returns over the past three years, Hovnanian Enterprises, Inc. (HOV) and KB Home (KBH) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOV and KBH?
Across a 3-year window, the weekly returns of HOV and KBH correlate at 0.72, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. Stretching to 5 years gives 0.71, with an annualized covariance of 1748.0 %².
Within HOV's tracked universe of 21 assets, KBH comes in at #5 by 3-year correlation. Neither side won the trailing year by much: -9.3% against -12.1%. One caveat on sizing: HOV is 1.9 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.
HOV vs KBH: side by side
| HOV (Hovnanian Enterprises, Inc.) | KBH (KB Home) | |
|---|---|---|
| 1-year return | -9.3% | -12.1% |
| 5-year return | +19.3% | +37.4% |
| Volatility (ann.) | 67.9% | 35.8% |
| Beta vs S&P 500 | 1.58 | 0.78 |
| Max drawdown (3Y) | -63.1% | -48.3% |
| Market cap | $0.7B | – |
| P/E (trailing) | 123.0 | 13.6 |
| Dividend yield | 0.00% | 1.78% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HOV | KBH |
|---|---|---|
| 2022 | -66.9% | -27.5% |
| 2023 | +269.8% | +99.0% |
| 2024 | -14.0% | +6.6% |
| 2025 | -27.1% | -12.7% |
| 2026 | +29.9% | -1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HOV and KBH good diversifiers for each other?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HOV and KBH?
The HOV/KBH correlation stands at 0.72 on a 3-year window (1 year: 0.72, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is KBH a good diversifier for HOV?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.72 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: HOV correlations · KBH correlations
