Correlation Between HomeTrust Bancshares, and Air Lease

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

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

Diversification Opportunities for HomeTrust Bancshares, and Air Lease

0.25

Correlation Coefficient

HomeTrust Bancshares,  Air Lease

Modest diversification

The 3 months correlation between HomeTrust and Air is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HomeTrust Bancshares, and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease and HomeTrust Bancshares, 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 HomeTrust Bancshares, are associated (or correlated) with Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of HomeTrust Bancshares, i.e., HomeTrust Bancshares, and Air Lease go up and down completely randomly.

Pair Corralation between HomeTrust Bancshares, and Air Lease

Considering the 90-day investment horizon HomeTrust Bancshares, is expected to generate 11.82 times more return on investment than Air Lease. However, HomeTrust Bancshares, is 11.82 times more volatile than Air Lease. It trades about 0.03 of its potential returns per unit of risk. Air Lease is currently generating about 0.12 per unit of risk. If you would invest  4,130  in HomeTrust Bancshares, on September 11, 2025 and sell it today you would earn a total of  96.00  from holding HomeTrust Bancshares, or generate 2.32% return on investment over 90 days.

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

HomeTrust Bancshares,  vs.  Air Lease

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.

Air Lease

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Air Lease is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with HomeTrust Bancshares, and Air Lease

The main advantage of trading using opposite HomeTrust Bancshares, and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeTrust Bancshares, position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.

The idea behind HomeTrust Bancshares, and Air Lease 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.