Hometrust Stock Volatility

HTBI -  USA Stock  

USD 29.12  0.16  0.55%

We consider Hometrust Bancshares very steady. Hometrust Bancshares holds Efficiency (Sharpe) Ratio of 0.0802, which attests that the entity had 0.0802% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Hometrust Bancshares, which you can use to evaluate the future volatility of the firm. Please check out Hometrust Bancshares Market Risk Adjusted Performance of 0.0504, downside deviation of 1.14, and Risk Adjusted Performance of 0.0385 to validate if the risk estimate we provide is consistent with the expected return of 0.0946%.

Hometrust Volatility 

 
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Hometrust Bancshares Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Hometrust daily returns, and it is calculated using variance and standard deviation. We also use Hometrust's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hometrust Bancshares volatility.

90 Days Market Risk

Very steady

Chance of Distress

Below Average

90 Days Economic Sensitivity

Almost mirrors the market

Hometrust Bancshares Market Sensitivity And Downside Risk

Hometrust Bancshares' beta coefficient measures the volatility of Hometrust stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Hometrust stock's returns against your selected market. In other words, Hometrust Bancshares's beta of 1.1 provides an investor with an approximation of how much risk Hometrust Bancshares stock can potentially add to one of your existing portfolios.
Let's try to break down what Hometrust's beta means in this case. Hometrust Bancshares returns are very sensitive to returns on the market. As the market goes up or down, Hometrust Bancshares is expected to follow.
3 Months Beta |Analyze Hometrust Bancshares Demand Trend
Check current 90 days Hometrust Bancshares correlation with market (DOW)

Hometrust Beta

    
  1.1  
Hometrust standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.18  
It is essential to understand the difference between upside risk (as represented by Hometrust Bancshares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hometrust Bancshares stock's daily returns or price. Since the actual investment returns on holding a position in Hometrust Bancshares stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Hometrust Bancshares.

Hometrust Bancshares Implied Volatility

    
  0.0  
Hometrust Bancshares' implied volatility exposes the market's sentiment of Hometrust Bancshares stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hometrust Bancshares' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hometrust Bancshares stock will not fluctuate a lot when Hometrust Bancshares' options near their expiration.

Hometrust Bancshares Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Hometrust Bancshares price series. View also all equity analysis or get more info about median price price transform indicator.

Hometrust Bancshares Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.1015 . This usually indicates Hometrust Bancshares market returns are reactive to returns on the market. As the market goes up or down, Hometrust Bancshares is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hometrust Bancshares or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hometrust Bancshares stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hometrust stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0375, implying that it can generate a 0.0375 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Hometrust Bancshares Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hometrust Bancshares or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hometrust Bancshares stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hometrust stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Given the investment horizon of 90 days the coefficient of variation of Hometrust Bancshares is 1247.22. The daily returns are distributed with a variance of 1.39 and standard deviation of 1.18. The mean deviation of Hometrust Bancshares is currently at 0.88. For similar time horizon, the selected benchmark (DOW) has volatility of 0.79
α
Alpha over DOW
0.0375
β
Beta against DOW1.10
σ
Overall volatility
1.18
Ir
Information ratio 0.031

Hometrust Bancshares Stock Return Volatility

Hometrust Bancshares historical daily return volatility represents how much Hometrust Bancshares stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 1.18% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7199% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Hometrust Bancshares Volatility

Volatility is a rate at which the price of Hometrust Bancshares or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Hometrust Bancshares may increase or decrease. In other words, similar to Hometrust's beta indicator, it measures the risk of Hometrust Bancshares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hometrust Bancshares fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Market Capitalization463.6 M470.5 M
HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina. Hometrust Bancshares operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 551 people.

Nearest Hometrust long CALL Option Payoff at Expiration

Hometrust Bancshares' implied volatility is one of the determining factors in the pricing options written on Hometrust Bancshares. Implied volatility approximates the future value of Hometrust Bancsharesusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Hometrust Bancshares over a specific time period.
View All Hometrust options
2021-11-19 CALL at $15.0 is a CALL option contract on Hometrust Bancshares' common stock with a strick price of 15.0 expiring on 2021-11-19. The contract was not traded in recent days and, as of today, has 32 days remaining before the expiration. The option is currently trading at a bid price of $13.2, and an ask price of $17.0. The implied volatility as of the 18th of October 2021 is 206.3438.
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      Hometrust Bancshares Price At Expiration 

Hometrust Bancshares Investment Opportunity

Hometrust Bancshares has a volatility of 1.18 and is 1.64 times more volatile than DOW. 10  of all equities and portfolios are less risky than Hometrust Bancshares. Compared to the overall equity markets, volatility of historical daily returns of Hometrust Bancshares is lower than 10 () of all global equities and portfolios over the last 90 days. Use Hometrust Bancshares to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Hometrust Bancshares to be traded at $28.54 in 90 days. . Let's try to break down what Hometrust's beta means in this case. Hometrust Bancshares returns are very sensitive to returns on the market. As the market goes up or down, Hometrust Bancshares is expected to follow.

Poor diversification

The correlation between Hometrust Bancshares and DJI is Poor diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hometrust Bancshares and DJI in the same portfolio assuming nothing else is changed.

Hometrust Bancshares Additional Risk Indicators

The analysis of Hometrust Bancshares' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Hometrust Bancshares' investment and either accepting that risk or mitigating it. Along with some common measures of Hometrust Bancshares stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0385
Market Risk Adjusted Performance0.0504
Mean Deviation0.9142
Semi Deviation1.06
Downside Deviation1.14
Coefficient Of Variation2256.01
Standard Deviation1.23
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Hometrust Bancshares Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Hometrust Bancshares as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Hometrust Bancshares' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Hometrust Bancshares' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Hometrust Bancshares.
Please check Risk vs Return Analysis. Note that the Hometrust Bancshares information on this page should be used as a complementary analysis to other Hometrust Bancshares' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Hometrust Bancshares price analysis, check to measure Hometrust Bancshares' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hometrust Bancshares is operating at the current time. Most of Hometrust Bancshares' value examination focuses on studying past and present price action to predict the probability of Hometrust Bancshares' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Hometrust Bancshares' price. Additionally, you may evaluate how the addition of Hometrust Bancshares to your portfolios can decrease your overall portfolio volatility.
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The market value of Hometrust Bancshares is measured differently than its book value, which is the value of Hometrust that is recorded on the company's balance sheet. Investors also form their own opinion of Hometrust Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Hometrust Bancshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hometrust Bancshares' market value can be influenced by many factors that don't directly affect Hometrust Bancshares underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hometrust Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine Hometrust Bancshares value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hometrust Bancshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.