Correlation Between SM Investments and HomeTrust Bancshares,

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

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

Diversification Opportunities for SM Investments and HomeTrust Bancshares,

0.33

Correlation Coefficient

SM Investments  HomeTrust Bancshares,

Weak diversification

The 3 months correlation between SVTMF and HomeTrust is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SM Investments and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and SM Investments 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 SM Investments 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 SM Investments i.e., SM Investments and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between SM Investments and HomeTrust Bancshares,

Assuming the 90 days horizon SM Investments is expected to generate 19.37 times less return on investment than HomeTrust Bancshares,. But when comparing it to its historical volatility, SM Investments is 42.82 times less risky than HomeTrust Bancshares,. It trades about 0.13 of its potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,602  in HomeTrust Bancshares, on May 12, 2025 and sell it today you would earn a total of  162.00  from holding HomeTrust Bancshares, or generate 4.5% return on investment over 90 days.

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

SM Investments  vs.  HomeTrust Bancshares,

SM Investments

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SM Investments are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, SM Investments is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

HomeTrust Bancshares,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 4 (%) 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SM Investments and HomeTrust Bancshares,

The main advantage of trading using opposite SM Investments and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM Investments 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 SM Investments 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.