KBH vs LGIH: Correlation
Measured on weekly returns over the past three years, KB Home (KBH) and LGI Homes, Inc. (LGIH) carry a correlation of 0.77, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KBH and LGIH?
Over the past 3 years, KBH and LGIH moved with a correlation of 0.77, which is strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 1468.2 %².
By 3-year correlation, LGIH places #7 of the 27 assets tracked against KBH. Twelve-month performance is nearly a tie, at -12.1% for KBH and -9.4% for LGIH.
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.
KBH vs LGIH: side by side
| KBH (KB Home) | LGIH (LGI Homes, Inc.) | |
|---|---|---|
| 1-year return | -12.1% | -9.4% |
| 5-year return | +37.4% | -64.2% |
| Volatility (ann.) | 35.8% | 53.2% |
| Beta vs S&P 500 | 0.78 | 1.23 |
| Max drawdown (3Y) | -48.3% | -74.8% |
| Market cap | – | $1.3B |
| P/E (trailing) | 13.6 | 20.4 |
| Dividend yield | 1.78% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KBH | LGIH |
|---|---|---|
| 2022 | -27.5% | -40.1% |
| 2023 | +99.0% | +43.8% |
| 2024 | +6.6% | -32.9% |
| 2025 | -12.7% | -51.9% |
| 2026 | -1.7% | +32.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KBH and LGIH good diversifiers for each other?
Only partially. A correlation of 0.77 means KBH and LGIH 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 KBH and LGIH?
The KBH/LGIH correlation stands at 0.77 on a 3-year window (1 year: 0.72, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is LGIH a good diversifier for KBH?
Only partially. A correlation of 0.77 means KBH and LGIH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.77 mean?
A reading of 0.77 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/kbh-vs-lgih.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/kbh-vs-lgih/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KBH correlations · LGIH correlations
