Correlation Between Bank of South and HomeTrust Bancshares
Can any of the company-specific risk be diversified away by investing in both Bank of South and HomeTrust Bancshares at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of South and HomeTrust Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of South and HomeTrust Bancshares, you can compare the effects of market volatilities on Bank of South and HomeTrust Bancshares and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank of South with a short position of HomeTrust Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of South and HomeTrust Bancshares.
Diversification Opportunities for Bank of South and HomeTrust Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and HomeTrust is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of South and HomeTrust Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares and Bank of South is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank of South are associated (or correlated) with HomeTrust Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeTrust Bancshares has no effect on the direction of Bank of South i.e., Bank of South and HomeTrust Bancshares go up and down completely randomly.
Pair Corralation between Bank of South and HomeTrust Bancshares
If you would invest 2,569 in HomeTrust Bancshares on November 9, 2024 and sell it today you would earn a total of 1,222 from holding HomeTrust Bancshares or generate 47.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of South vs. HomeTrust Bancshares
Performance |
| Timeline |
| Bank of South |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| HomeTrust Bancshares |
Bank of South and HomeTrust Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of South and HomeTrust Bancshares
The main advantage of trading using opposite Bank of South and HomeTrust Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of South position performs unexpectedly, HomeTrust Bancshares can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HomeTrust Bancshares will offset losses from the drop in HomeTrust Bancshares' long position.| Bank of South vs. Auburn National Bancorporation | Bank of South vs. Bank of Marin | Bank of South vs. Ames National | Bank of South vs. CF Financial |
| HomeTrust Bancshares vs. First Northwest Bancorp | HomeTrust Bancshares vs. Community West Bancshares | HomeTrust Bancshares vs. First Financial Northwest | HomeTrust Bancshares vs. Great Southern Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |