Correlation Between HomeTrust Bancshares, and Boston Properties

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

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

Diversification Opportunities for HomeTrust Bancshares, and Boston Properties

0.49

Correlation Coefficient

HomeTrust Bancshares,  Boston Properties

Very weak diversification

The 3 months correlation between HomeTrust and Boston is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HomeTrust Bancshares, and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and HomeTrust Bancshares, 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 HomeTrust Bancshares, are associated (or correlated) with Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of HomeTrust Bancshares, i.e., HomeTrust Bancshares, and Boston Properties go up and down completely randomly.

Pair Corralation between HomeTrust Bancshares, and Boston Properties

Considering the 90-day investment horizon HomeTrust Bancshares, is expected to generate 0.73 times more return on investment than Boston Properties. However, HomeTrust Bancshares, is 1.37 times less risky than Boston Properties. It trades about 0.13 of its potential returns per unit of risk. Boston Properties is currently generating about 0.03 per unit of risk. If you would invest  3,509  in HomeTrust Bancshares, on May 3, 2025 and sell it today you would earn a total of  377.00  from holding HomeTrust Bancshares, or generate 10.74% return on investment over 90 days.

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

HomeTrust Bancshares,  vs.  Boston Properties

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.

Boston Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Properties are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Boston Properties is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with HomeTrust Bancshares, and Boston Properties

The main advantage of trading using opposite HomeTrust Bancshares, and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeTrust Bancshares, position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.

The idea behind HomeTrust Bancshares, and Boston Properties 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.