Correlation Between Guangdong Investment and HomeTrust Bancshares,

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

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

Diversification Opportunities for Guangdong Investment and HomeTrust Bancshares,

0.68

Correlation Coefficient

Guangdong Investment  HomeTrust Bancshares,

Poor diversification

The 3 months correlation between Guangdong and HomeTrust is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and Guangdong Investment 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 Guangdong Investment Limited 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 Guangdong Investment i.e., Guangdong Investment and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between Guangdong Investment and HomeTrust Bancshares,

Assuming the 90 days horizon Guangdong Investment is expected to generate 1.7 times less return on investment than HomeTrust Bancshares,. But when comparing it to its historical volatility, Guangdong Investment Limited is 2.09 times less risky than HomeTrust Bancshares,. It trades about 0.13 of its potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,509  in HomeTrust Bancshares, on May 4, 2025 and sell it today you would earn a total of  306.00  from holding HomeTrust Bancshares, or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Guangdong Investment Limited  vs.  HomeTrust Bancshares,

Guangdong Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guangdong Investment Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Guangdong Investment is not utilizing all of its potentials. The current 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 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, HomeTrust Bancshares, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Guangdong Investment and HomeTrust Bancshares,

The main advantage of trading using opposite Guangdong Investment and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment 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 Guangdong Investment Limited 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..