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KBH vs SDHC: Correlation

Measured on weekly returns over the past three years, KB Home (KBH) and Smith Douglas Homes Corp. (SDHC) carry a correlation of 0.63, a strong link.

Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology

Correlation (3Y)
0.63
strong
Correlation (1Y)
0.60
last 12 months
Correlation (5Y)
n/a
long-run
Ann. covariance
1105.3
%² · weekly, annualized

How correlated are KBH and SDHC?

On 3 years of weekly data the KBH/SDHC correlation comes out at 0.63, strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 1105.3 %².

By 3-year correlation, SDHC places #16 of the 27 assets tracked against KBH. The last year tells two different stories: KBH led by 26.2 percentage points, -12.1% for KBH against -38.3% for SDHC.

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 SDHC: side by side

KBH (KB Home)SDHC (Smith Douglas Homes Corp.)
1-year return-12.1%-38.3%
5-year return+37.4%n/a
Volatility (ann.)35.8%49.6%
Beta vs S&P 5000.781.07
Max drawdown (3Y)-48.3%-72.0%
Market cap$0.1B
P/E (trailing)13.616.9
Dividend yield1.78%0.00%
Sector / categoryUS ListedUS Listed
Lower P/E: KBH 13.6 vs 16.9Higher yield: KBH 1.78% vs 0.00%Smaller drawdown: KBH -48.3% vs -72.0%
-47%0%+6%2025-09-052026-08-27
Price paths over the last 12 months, both indexed to 100 at the start (weekly closes). KBH · SDHC

Year-by-year returns

YearKBHSDHC
2022-27.5%
2023+99.0%
2024+6.6%
2025-12.7%-34.6%
2026-1.7%-27.5%

Calendar-year price returns; the current year is year-to-date as of the data date above.

Are KBH and SDHC good diversifiers for each other?

To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.

FAQ

What is the correlation between KBH and SDHC?

The KBH/SDHC correlation stands at 0.63 on a 3-year window (1 year: 0.60, 5 years: n/a), computed from weekly returns as of 2026-08-27.

Is SDHC a good diversifier for KBH?

To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.

What does a correlation of 0.63 mean?

On the −1 to +1 scale, 0.63 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.

Use this data

JSON API · no key required
$ curl https://www.pairbook.io/api/v1/pairs/kbh-vs-sdhc.json

KBH vs SDHC: 3-year weekly correlation 0.63KBH vs SDHC0.63

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Related comparisons

Hubs: KBH correlations · SDHC correlations