Regional Banks (KRE) vs Case-Shiller Home Prices
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
Regional banks hold significant commercial and residential real estate exposure. When home prices fall, KRE often underperforms as mortgage credit quality concerns mount. When home prices rise with KRE strength, positive real estate cycle supports regional bank earnings and credit metrics.
Cross-Asset Analysis
To orient the reader: Regional Banks (KRE) represents SPDR S&P Regional Banking ETF, credit cycle indicator and Case-Shiller Home Price Index represents s&P CoreLogic Case-Shiller national home price index, which is why this comparison sits in the cross asset pair category on Convex. Cross-asset pairs like Regional Banks (KRE) against Case-Shiller Home Price Index expose the macro variables that cut across asset classes: liquidity, inflation, real rates, and risk appetite. Cross-asset flows trail macro regime changes with typical lags, which is why spreads like Regional Banks (KRE)-Case-Shiller Home Price Index often precede coincident indicators.
In risk-on windows, correlations across asset classes converge toward historical values, and the Regional Banks (KRE)-Case-Shiller Home Price Index spread typically obey its historical fair value. Implied volatility regimes in Regional Banks (KRE) and Case-Shiller Home Price Index transmit through hedging flows that connect one tape to the other via dealer balance sheets. Policy interventions can synthetically compress or widen the Regional Banks (KRE)-Case-Shiller Home Price Index spread, most notably when central banks absorb specific asset classes.
The Equity Sector and Housing corners of the market share underlying drivers but differ in sensitivity, and the Regional Banks (KRE)-Case-Shiller Home Price Index spread expresses those sensitivities. Risk-off regimes concentrate correlations and compress the Regional Banks (KRE)-Case-Shiller Home Price Index spread into narrower ranges.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Regional Banks (KRE) and Case-Shiller Home Price Index?+
Regional Banks (KRE) and Case-Shiller Home Price Index are connected through shared macro drivers across asset classes. When the dominant macro driver shifts, both respond, though with different sensitivities and at different speeds. The spread between Regional Banks (KRE) and Case-Shiller Home Price Index captures the specific macro signal that flows through this relationship.
When does Regional Banks (KRE) typically lead Case-Shiller Home Price Index?+
Regional Banks (KRE) tends to lead Case-Shiller Home Price Index during macro regime changes, where the more liquid asset moves first. In those periods, moves in Regional Banks (KRE) precede corresponding moves in Case-Shiller Home Price Index by days to weeks, depending on the transmission channel and the depth of each market.
How are Regional Banks (KRE) and Case-Shiller Home Price Index historically correlated?+
Long-run correlation between Regional Banks (KRE) and Case-Shiller Home Price Index varies by regime. Cross-asset correlations vary by regime, tending to tighten in stress and loosen during normal conditions. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Regional Banks (KRE)-Case-Shiller Home Price Index relationship.
What macro conditions drive divergence between Regional Banks (KRE) and Case-Shiller Home Price Index?+
Divergence between Regional Banks (KRE) and Case-Shiller Home Price Index typically arises from idiosyncratic shocks in one asset, policy interventions, or structural shifts in demand. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Regional Banks (KRE) or Case-Shiller Home Price Index.
Is Regional Banks (KRE) a hedge for Case-Shiller Home Price Index?+
Cross-asset hedges between Regional Banks (KRE) and Case-Shiller Home Price Index work when the macro drivers of the two assets are sufficiently decorrelated, which depends on the regime and therefore needs to be reviewed as conditions change. Effective hedging requires matching the hedge to the specific risk being protected, and the Regional Banks (KRE)-Case-Shiller Home Price Index pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.