Correlation Between ISPAF and HomeTrust Bancshares,

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

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

Diversification Opportunities for ISPAF and HomeTrust Bancshares,

-0.17

Correlation Coefficient

ISPAF  HomeTrust Bancshares,

Good diversification

The 3 months correlation between ISPAF and HomeTrust is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ISPAF and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and ISPAF 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 ISPAF 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 ISPAF i.e., ISPAF and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between ISPAF and HomeTrust Bancshares,

Assuming the 90 days horizon ISPAF is expected to generate 1.76 times less return on investment than HomeTrust Bancshares,. But when comparing it to its historical volatility, ISPAF is 7.79 times less risky than HomeTrust Bancshares,. It trades about 0.12 of its potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,114  in HomeTrust Bancshares, on September 6, 2025 and sell it today you would earn a total of  75.00  from holding HomeTrust Bancshares, or generate 1.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

ISPAF  vs.  HomeTrust Bancshares,

ISPAF

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ISPAF are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ISPAF 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

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 2 (%) 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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ISPAF and HomeTrust Bancshares,

The main advantage of trading using opposite ISPAF and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISPAF 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 ISPAF 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.