Correlation Between Civista Bancshares and HomeTrust Bancshares
Can any of the company-specific risk be diversified away by investing in both Civista Bancshares 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 Civista Bancshares and HomeTrust Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civista Bancshares and HomeTrust Bancshares, you can compare the effects of market volatilities on Civista Bancshares 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 Civista Bancshares with a short position of HomeTrust Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civista Bancshares and HomeTrust Bancshares.
Diversification Opportunities for Civista Bancshares and HomeTrust Bancshares
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Civista and HomeTrust is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Civista Bancshares and HomeTrust Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares and Civista Bancshares 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 Civista Bancshares 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 Civista Bancshares i.e., Civista Bancshares and HomeTrust Bancshares go up and down completely randomly.
Pair Corralation between Civista Bancshares and HomeTrust Bancshares
Given the investment horizon of 90 days Civista Bancshares is expected to generate 1.33 times less return on investment than HomeTrust Bancshares. In addition to that, Civista Bancshares is 1.05 times more volatile than HomeTrust Bancshares. It trades about 0.06 of its total potential returns per unit of risk. HomeTrust Bancshares is currently generating about 0.08 per unit of volatility. 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 | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Civista Bancshares vs. HomeTrust Bancshares
Performance |
| Timeline |
| Civista Bancshares |
| HomeTrust Bancshares |
Civista Bancshares and HomeTrust Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civista Bancshares and HomeTrust Bancshares
The main advantage of trading using opposite Civista Bancshares and HomeTrust Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civista Bancshares 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.| Civista Bancshares vs. Home Federal Bancorp | Civista Bancshares vs. First Financial Northwest | Civista Bancshares vs. First Northwest Bancorp | Civista Bancshares vs. First Capital |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |