Correlation Between HomeTrust Bancshares, and CSW Industrials,

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

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

Diversification Opportunities for HomeTrust Bancshares, and CSW Industrials,

-0.48

Correlation Coefficient

HomeTrust Bancshares,  CSW Industrials,

Very good diversification

The 3 months correlation between HomeTrust and CSW is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding HomeTrust Bancshares, and CSW Industrials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSW Industrials, 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 CSW Industrials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSW Industrials, has no effect on the direction of HomeTrust Bancshares, i.e., HomeTrust Bancshares, and CSW Industrials, go up and down completely randomly.

Pair Corralation between HomeTrust Bancshares, and CSW Industrials,

Considering the 90-day investment horizon HomeTrust Bancshares, is expected to generate 0.69 times more return on investment than CSW Industrials,. However, HomeTrust Bancshares, is 1.45 times less risky than CSW Industrials,. It trades about 0.05 of its potential returns per unit of risk. CSW Industrials, is currently generating about -0.18 per unit of risk. If you would invest  3,632  in HomeTrust Bancshares, on May 14, 2025 and sell it today you would earn a total of  135.00  from holding HomeTrust Bancshares, or generate 3.72% return on investment over 90 days.

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

HomeTrust Bancshares,  vs.  CSW Industrials,

HomeTrust Bancshares,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HomeTrust Bancshares, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with HomeTrust Bancshares, and CSW Industrials,

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

The idea behind HomeTrust Bancshares, and CSW Industrials, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.