KBH vs LOW: Correlation
Measured on weekly returns over the past three years, KB Home (KBH) and Lowe's (LOW) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KBH and LOW?
Across a 3-year window, the weekly returns of KBH and LOW correlate at 0.68, strong. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 604.7 %².
Among the 27 assets we track against KBH, LOW ranks #14 by 3-year correlation. The trailing year gives KBH the advantage: -12.1% versus -18.4%, a 6.3-point spread.
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 LOW: side by side
| KBH (KB Home) | LOW (Lowe's) | |
|---|---|---|
| 1-year return | -12.1% | -18.4% |
| 5-year return | +37.4% | +11.1% |
| Volatility (ann.) | 35.8% | 24.8% |
| Beta vs S&P 500 | 0.78 | 0.83 |
| Max drawdown (3Y) | -48.3% | -29.0% |
| Market cap | – | – |
| P/E (trailing) | 13.6 | 17.8 |
| Dividend yield | 1.78% | 2.31% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | KBH | LOW |
|---|---|---|
| 2022 | -27.5% | -21.5% |
| 2023 | +99.0% | +14.0% |
| 2024 | +6.6% | +13.0% |
| 2025 | -12.7% | -0.3% |
| 2026 | -1.7% | -12.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KBH and LOW good diversifiers for each other?
Only partially. A correlation of 0.68 means KBH and LOW 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 LOW?
The KBH/LOW correlation stands at 0.68 on a 3-year window (1 year: 0.65, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is LOW a good diversifier for KBH?
Only partially. A correlation of 0.68 means KBH and LOW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
On the −1 to +1 scale, 0.68 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: KBH correlations · LOW correlations
