Correlation Between Capital City and HomeTrust Bancshares,
Can any of the company-specific risk be diversified away by investing in both Capital City 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 Capital City and HomeTrust Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital City Bank and HomeTrust Bancshares,, you can compare the effects of market volatilities on Capital City 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 Capital City with a short position of HomeTrust Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital City and HomeTrust Bancshares,.
Diversification Opportunities for Capital City and HomeTrust Bancshares,
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and HomeTrust is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Capital City Bank and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and Capital City 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 Capital City Bank 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 Capital City i.e., Capital City and HomeTrust Bancshares, go up and down completely randomly.
Pair Corralation between Capital City and HomeTrust Bancshares,
Given the investment horizon of 90 days Capital City is expected to generate 3.06 times less return on investment than HomeTrust Bancshares,. In addition to that, Capital City is 1.08 times more volatile than HomeTrust Bancshares,. It trades about 0.03 of its total potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.11 per unit of volatility. If you would invest 4,061 in HomeTrust Bancshares, on September 13, 2025 and sell it today you would earn a total of 424.00 from holding HomeTrust Bancshares, or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital City Bank vs. HomeTrust Bancshares,
Performance |
| Timeline |
| Capital City Bank |
| HomeTrust Bancshares, |
Capital City and HomeTrust Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital City and HomeTrust Bancshares,
The main advantage of trading using opposite Capital City and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital City 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.| Capital City vs. MetroCity Bankshares | Capital City vs. Camden National | Capital City vs. Metropolitan Bank Holding | Capital City vs. Mid Penn Bancorp |
| HomeTrust Bancshares, vs. Metropolitan Bank Holding | HomeTrust Bancshares, vs. Capital City Bank | HomeTrust Bancshares, vs. Amerant Bancorp | HomeTrust Bancshares, vs. Northeast Bancorp |
Check out your portfolio center.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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