Correlation Between CompoSecure and HomeTrust Bancshares,

Can any of the company-specific risk be diversified away by investing in both CompoSecure 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 CompoSecure and HomeTrust Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CompoSecure and HomeTrust Bancshares,, you can compare the effects of market volatilities on CompoSecure 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 CompoSecure with a short position of HomeTrust Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompoSecure and HomeTrust Bancshares,.

Diversification Opportunities for CompoSecure and HomeTrust Bancshares,

0.69

Correlation Coefficient

CompoSecure  HomeTrust Bancshares,

Poor diversification

The 3 months correlation between CompoSecure and HomeTrust is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and CompoSecure 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 CompoSecure 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 CompoSecure i.e., CompoSecure and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between CompoSecure and HomeTrust Bancshares,

Assuming the 90 days horizon CompoSecure is expected to generate 2.39 times more return on investment than HomeTrust Bancshares,. However, CompoSecure is 2.39 times more volatile than HomeTrust Bancshares,. It trades about 0.22 of its potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.08 per unit of risk. If you would invest  430.00  in CompoSecure on May 8, 2025 and sell it today you would earn a total of  224.00  from holding CompoSecure or generate 52.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CompoSecure  vs.  HomeTrust Bancshares,

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

HomeTrust Bancshares,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, HomeTrust Bancshares, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CompoSecure and HomeTrust Bancshares,

The main advantage of trading using opposite CompoSecure and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompoSecure 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,'s long position.

The idea behind CompoSecure and HomeTrust Bancshares, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.