Correlation Between First Savings and HomeTrust Bancshares,

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

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

Diversification Opportunities for First Savings and HomeTrust Bancshares,

-0.2

Correlation Coefficient

First Savings  HomeTrust Bancshares,

Good diversification

The 3 months correlation between First and HomeTrust is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding First Savings Financial and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and First Savings 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 First Savings Financial 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 First Savings i.e., First Savings and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between First Savings and HomeTrust Bancshares,

Given the investment horizon of 90 days First Savings Financial is expected to under-perform the HomeTrust Bancshares,. But the stock apears to be less risky and, when comparing its historical volatility, First Savings Financial is 1.07 times less risky than HomeTrust Bancshares,. The stock trades about -0.06 of its potential returns per unit of risk. The HomeTrust Bancshares, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,493  in HomeTrust Bancshares, on May 7, 2025 and sell it today you would earn a total of  380.00  from holding HomeTrust Bancshares, or generate 10.88% return on investment over 90 days.

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

First Savings Financial  vs.  HomeTrust Bancshares,

First Savings Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days First Savings Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Savings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

HomeTrust Bancshares,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HomeTrust Bancshares, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with First Savings and HomeTrust Bancshares,

The main advantage of trading using opposite First Savings and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Savings 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 First Savings Financial 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.