Correlation Between HomeTrust Bancshares, and ScanSource

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

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

Diversification Opportunities for HomeTrust Bancshares, and ScanSource

0.23

Correlation Coefficient

HomeTrust Bancshares,  ScanSource

Modest diversification

The 3 months correlation between HomeTrust and ScanSource is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HomeTrust Bancshares, and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of HomeTrust Bancshares, i.e., HomeTrust Bancshares, and ScanSource go up and down completely randomly.

Pair Corralation between HomeTrust Bancshares, and ScanSource

Considering the 90-day investment horizon HomeTrust Bancshares, is expected to generate 0.71 times more return on investment than ScanSource. However, HomeTrust Bancshares, is 1.42 times less risky than ScanSource. It trades about 0.14 of its potential returns per unit of risk. ScanSource is currently generating about 0.02 per unit of risk. If you would invest  3,550  in HomeTrust Bancshares, on September 18, 2025 and sell it today you would earn a total of  1,032  from holding HomeTrust Bancshares, or generate 29.07% return on investment over 90 days.

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

HomeTrust Bancshares,  vs.  ScanSource

HomeTrust Bancshares,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 7 (%) 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 January 2026.

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ScanSource is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HomeTrust Bancshares, and ScanSource

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

The idea behind HomeTrust Bancshares, and ScanSource 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.