Correlation Between Philip Morris and HomeTrust Bancshares,

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

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

Diversification Opportunities for Philip Morris and HomeTrust Bancshares,

0.01

Correlation Coefficient

Philip Morris  HomeTrust Bancshares,

Significant diversification

The 3 months correlation between Philip and HomeTrust is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and Philip Morris 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 Philip Morris International 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 Philip Morris i.e., Philip Morris and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between Philip Morris and HomeTrust Bancshares,

Allowing for the 90-day total investment horizon Philip Morris International is expected to under-perform the HomeTrust Bancshares,. But the stock apears to be less risky and, when comparing its historical volatility, Philip Morris International is 1.05 times less risky than HomeTrust Bancshares,. The stock trades about -0.04 of its potential returns per unit of risk. The HomeTrust Bancshares, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,038  in HomeTrust Bancshares, on September 16, 2025 and sell it today you would earn a total of  532.00  from holding HomeTrust Bancshares, or generate 13.17% return on investment over 90 days.

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

Philip Morris International  vs.  HomeTrust Bancshares,

Philip Morris Intern

Risk-Adjusted Performance

Weakest

Over the last 90 days Philip Morris International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Philip Morris is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

HomeTrust Bancshares,

Risk-Adjusted Performance

Fair

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, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Philip Morris and HomeTrust Bancshares,

The main advantage of trading using opposite Philip Morris and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris 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 Philip Morris International 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.