Correlation Between SmartStop Self and HomeTrust Bancshares,

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

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

Diversification Opportunities for SmartStop Self and HomeTrust Bancshares,

0.13

Correlation Coefficient

SmartStop Self  HomeTrust Bancshares,

Average diversification

The 3 months correlation between SmartStop and HomeTrust is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and SmartStop Self 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 SmartStop Self Storage 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 SmartStop Self i.e., SmartStop Self and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between SmartStop Self and HomeTrust Bancshares,

Considering the 90-day investment horizon SmartStop Self Storage is expected to under-perform the HomeTrust Bancshares,. But the stock apears to be less risky and, when comparing its historical volatility, SmartStop Self Storage is 1.09 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 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,544  in HomeTrust Bancshares, on May 9, 2025 and sell it today you would earn a total of  224.00  from holding HomeTrust Bancshares, or generate 6.32% return on investment over 90 days.

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

SmartStop Self Storage  vs.  HomeTrust Bancshares,

SmartStop Self Storage

Risk-Adjusted Performance

Weakest

Over the last 90 days SmartStop Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, SmartStop Self is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

HomeTrust Bancshares,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, HomeTrust Bancshares, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SmartStop Self and HomeTrust Bancshares,

The main advantage of trading using opposite SmartStop Self and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self 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 SmartStop Self Storage 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.