Correlation Between Auburn National and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Auburn National and Glacier Bancorp 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 Auburn National and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auburn National Bancorporation and Glacier Bancorp, you can compare the effects of market volatilities on Auburn National and Glacier Bancorp 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 Auburn National with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn National and Glacier Bancorp.
Diversification Opportunities for Auburn National and Glacier Bancorp
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auburn and Glacier is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Auburn National Bancorp. and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Auburn National 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 Auburn National Bancorporation are associated (or correlated) with Glacier Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Bancorp has no effect on the direction of Auburn National i.e., Auburn National and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Auburn National and Glacier Bancorp
Given the investment horizon of 90 days Auburn National Bancorporation is expected to under-perform the Glacier Bancorp. In addition to that, Auburn National is 1.05 times more volatile than Glacier Bancorp. It trades about -0.15 of its total potential returns per unit of risk. Glacier Bancorp is currently generating about 0.09 per unit of volatility. If you would invest 4,915 in Glacier Bancorp on November 9, 2024 and sell it today you would earn a total of 157.00 from holding Glacier Bancorp or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auburn National Bancorp. vs. Glacier Bancorp
Performance |
| Timeline |
| Auburn National Banc |
| Glacier Bancorp |
Auburn National and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auburn National and Glacier Bancorp
The main advantage of trading using opposite Auburn National and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn National position performs unexpectedly, Glacier Bancorp 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 Glacier Bancorp will offset losses from the drop in Glacier Bancorp's long position.| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares | Glacier Bancorp vs. BancFirst |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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