KBH vs TOL: Correlation
KB Home (KBH) and Toll Brothers, Inc. (TOL) show a very strong relationship: their 3-year correlation of weekly returns is 0.87.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KBH and TOL?
Across a 3-year window, the weekly returns of KBH and TOL correlate at 0.87, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.84 over 1 year against 0.87 over 3. Stretching to 5 years gives 0.83, with an annualized covariance of 1082.0 %².
By 3-year correlation, TOL places #4 of the 27 assets tracked against KBH. Their recent paths diverged sharply: over the last 12 months TOL outperformed by 18.1 percentage points (-12.1% for KBH against +6.0% for TOL).
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 TOL: side by side
| KBH (KB Home) | TOL (Toll Brothers, Inc.) | |
|---|---|---|
| 1-year return | -12.1% | +6.0% |
| 5-year return | +37.4% | +139.9% |
| Volatility (ann.) | 35.8% | 34.9% |
| Beta vs S&P 500 | 0.78 | 1.14 |
| Max drawdown (3Y) | -48.3% | -46.0% |
| Market cap | – | $13.4B |
| P/E (trailing) | 13.6 | 11.9 |
| Dividend yield | 1.78% | 0.69% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KBH | TOL |
|---|---|---|
| 2022 | -27.5% | -30.0% |
| 2023 | +99.0% | +108.6% |
| 2024 | +6.6% | +23.4% |
| 2025 | -12.7% | +8.3% |
| 2026 | -1.7% | +7.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KBH and TOL good diversifiers for each other?
No: a correlation of 0.87 means KBH and TOL tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between KBH and TOL?
The KBH/TOL correlation stands at 0.87 on a 3-year window (1 year: 0.84, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is TOL a good diversifier for KBH?
No: a correlation of 0.87 means KBH and TOL tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.87 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/kbh-vs-tol.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/kbh-vs-tol/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KBH correlations · TOL correlations
