Correlation Between HomeTrust Bancshares and Affinity Bancshares
Can any of the company-specific risk be diversified away by investing in both HomeTrust Bancshares and Affinity 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 HomeTrust Bancshares and Affinity Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeTrust Bancshares and Affinity Bancshares, you can compare the effects of market volatilities on HomeTrust Bancshares and Affinity 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 HomeTrust Bancshares with a short position of Affinity Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeTrust Bancshares and Affinity Bancshares.
Diversification Opportunities for HomeTrust Bancshares and Affinity Bancshares
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HomeTrust and Affinity is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding HomeTrust Bancshares and Affinity Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affinity Bancshares and HomeTrust 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 HomeTrust Bancshares are associated (or correlated) with Affinity Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affinity Bancshares has no effect on the direction of HomeTrust Bancshares i.e., HomeTrust Bancshares and Affinity Bancshares go up and down completely randomly.
Pair Corralation between HomeTrust Bancshares and Affinity Bancshares
Given the investment horizon of 90 days HomeTrust Bancshares is expected to generate 6.86 times less return on investment than Affinity Bancshares. In addition to that, HomeTrust Bancshares is 3.47 times more volatile than Affinity Bancshares. It trades about 0.0 of its total potential returns per unit of risk. Affinity Bancshares is currently generating about 0.1 per unit of volatility. If you would invest 2,155 in Affinity Bancshares on September 24, 2024 and sell it today you would earn a total of 94.00 from holding Affinity Bancshares or generate 4.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HomeTrust Bancshares vs. Affinity Bancshares
Performance |
Timeline |
HomeTrust Bancshares |
Affinity Bancshares |
HomeTrust Bancshares and Affinity Bancshares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HomeTrust Bancshares and Affinity Bancshares
The main advantage of trading using opposite HomeTrust Bancshares and Affinity Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeTrust Bancshares position performs unexpectedly, Affinity 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 Affinity Bancshares will offset losses from the drop in Affinity Bancshares' long position.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
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 |