KB Home Correlations

KBH Stock

USD 85.03 5.63 7.09%

The current 90-days correlation between KB Home and Toll Brothers is 0.89 (i.e., Very poor diversification). The correlation of KB Home is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

KB Home Correlation With Market

Weak diversification

The correlation between KB Home and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding KB Home and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KB Home. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

For more detail on how to invest in KBH Stock please use our How to Invest in KB Home guide.

Moving together with KBH Stock

0.87	CCS	Century Communities	Pair Corr
0.86	DFH	Dream Finders Homes	Pair Corr
0.75	DHI	DR Horton	Pair Corr
0.72	DTC	Solo Brands	Pair Corr
0.85	HOV	Hovnanian Enterprises Earnings Call Next Week	Pair Corr
0.84	BRLT	Brilliant Earth Group	Pair Corr
0.7	CTHR	Charles Colvard	Pair Corr

Moving against KBH Stock

0.62	DOGZ	Dogness International Downward Rally	Pair Corr
0.57	VSTO	Vista Outdoor	Pair Corr
0.5	AS	Amer Sports,	Pair Corr
0.38	VOXX	VOXX International	Pair Corr
0.38	GIL	Gildan Activewear	Pair Corr
0.36	RL	Ralph Lauren Corp	Pair Corr
0.31	FOSL	Fossil Group	Pair Corr
0.31	HBI	Hanesbrands	Pair Corr
0.51	LULU	Lululemon Athletica	Pair Corr
0.51	GM	General Motors Aggressive Push	Pair Corr
0.44	EM	Smart Share Global	Pair Corr
0.44	JZ	Jianzhi Education	Pair Corr
0.39	JRSH	Jerash Holdings	Pair Corr
0.33	BH	Biglari Holdings	Pair Corr

Related Correlations Analysis

	DHI	PHM	TOL	NVR	LEN	HOV	TMHC	MHO	CCS	BZH
DHI		0.73	-0.14	0.62	0.95	0.82	-0.28	0.64	0.96	0.12	DHI
PHM	0.73		0.52	0.94	0.82	0.49	0.27	0.89	0.76	0.55	PHM
TOL	-0.14	0.52		0.56	0.07	-0.15	0.87	0.6	-0.01	0.78	TOL
NVR	0.62	0.94	0.56		0.71	0.34	0.32	0.84	0.64	0.47	NVR
LEN	0.95	0.82	0.07	0.71		0.82	-0.06	0.77	0.98	0.34	LEN
HOV	0.82	0.49	-0.15	0.34	0.82		-0.12	0.56	0.89	0.22	HOV
TMHC	-0.28	0.27	0.87	0.32	-0.06	-0.12		0.46	-0.1	0.73	TMHC
MHO	0.64	0.89	0.6	0.84	0.77	0.56	0.46		0.74	0.69	MHO
CCS	0.96	0.76	-0.01	0.64	0.98	0.89	-0.1	0.74		0.29	CCS
BZH	0.12	0.55	0.78	0.47	0.34	0.22	0.73	0.69	0.29		BZH
	DHI	PHM	TOL	NVR	LEN	HOV	TMHC	MHO	CCS	BZH

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CCS	+ 0.98	LEN
CCS	+ 0.96	DHI
LEN	+ 0.95	DHI
NVR	+ 0.94	PHM
MHO	+ 0.89	PHM
CCS	+ 0.89	HOV

High negative correlations

TMHC	- 0.28	DHI
HOV	- 0.15	TOL
TOL	- 0.14	DHI
TMHC	- 0.12	HOV
CCS	- 0.1	TMHC
TMHC	- 0.06	LEN

Risk-Adjusted Indicators

There is a big difference between KBH Stock performing well and KB Home Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze KB Home's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DHI	1.28	(0.21)	0.00	(0.71)	0.00	0.00	1.97	(3.16)	10.50
PHM	1.36	(0.04)	(0.05)	0.03	1.98	(1.43)	2.91	(3.21)	11.82
TOL	1.35	0.07	0.03	0.21	1.51	(1.45)	3.43	(2.91)	9.12
NVR	1.11	(0.05)	(0.09)	0.01	1.33	(1.12)	2.09	(1.93)	6.47
LEN	1.28	(0.09)	0.00	(0.43)	0.00	0.00	2.17	(3.91)	8.84
HOV	2.26	(0.52)	0.00	(0.31)	0.00	0.00	3.86	(5.89)	16.06
TMHC	1.40	0.05	0.01	0.19	1.68	(1.54)	3.10	(2.82)	9.89
MHO	1.67	(0.07)	(0.02)	0.06	2.39	(1.62)	3.69	(4.24)	11.78
CCS	1.61	(0.22)	0.00	(0.15)	0.00	0.00	3.41	(3.86)	13.05
BZH	1.75	0.00	0.01	0.12	2.10	(1.86)	4.14	(3.93)	12.19

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