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,

0.3

Correlation Coefficient

First Savings  HomeTrust Bancshares,

Weak diversification

The 3 months correlation between First and HomeTrust is 0.3. 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 is expected to generate 18.57 times less return on investment than HomeTrust Bancshares,. In addition to that, First Savings is 1.03 times more volatile than HomeTrust Bancshares,. It trades about 0.01 of its total potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.14 per unit of volatility. If you would invest  3,618  in HomeTrust Bancshares, on May 27, 2025 and sell it today you would earn a total of  499.00  from holding HomeTrust Bancshares, or generate 13.79% return on investment over 90 days.

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

First Savings Financial  vs.  HomeTrust Bancshares,

First Savings Financial

Risk-Adjusted Performance

Weakest

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

Good

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 unfluctuating basic indicators, HomeTrust Bancshares, sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.