Correlation Between Community West and HomeTrust Bancshares,

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

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

Diversification Opportunities for Community West and HomeTrust Bancshares,

0.77

Correlation Coefficient

Community West  HomeTrust Bancshares,

Poor diversification

The 3 months correlation between Community and HomeTrust is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Community West Bancshares and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and Community West 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 Community West 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 Community West i.e., Community West and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between Community West and HomeTrust Bancshares,

Given the investment horizon of 90 days Community West is expected to generate 3.14 times less return on investment than HomeTrust Bancshares,. In addition to that, Community West is 1.03 times more volatile than HomeTrust Bancshares,. It trades about 0.03 of its total potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.09 per unit of volatility. If you would invest  3,821  in HomeTrust Bancshares, on July 2, 2025 and sell it today you would earn a total of  317.00  from holding HomeTrust Bancshares, or generate 8.3% return on investment over 90 days.

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

Community West Bancshares  vs.  HomeTrust Bancshares,

Community West Bancshares

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Community West Bancshares are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Community West is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

HomeTrust Bancshares,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 7 (%) 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 October 2025.

Pair Trading with Community West and HomeTrust Bancshares,

The main advantage of trading using opposite Community West and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Community West 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 Community West Bancshares 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.