Correlation Between Columbia Banking and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Columbia Banking 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 Columbia Banking and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Banking System and Glacier Bancorp, you can compare the effects of market volatilities on Columbia Banking 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 Columbia Banking with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Banking and Glacier Bancorp.
Diversification Opportunities for Columbia Banking and Glacier Bancorp
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Glacier is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Banking System and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Columbia Banking 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 Columbia Banking System 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 Columbia Banking i.e., Columbia Banking and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Columbia Banking and Glacier Bancorp
Given the investment horizon of 90 days Columbia Banking System is expected to generate 1.09 times more return on investment than Glacier Bancorp. However, Columbia Banking is 1.09 times more volatile than Glacier Bancorp. It trades about 0.02 of its potential returns per unit of risk. Glacier Bancorp is currently generating about 0.02 per unit of risk. If you would invest 2,825 in Columbia Banking System on August 24, 2024 and sell it today you would earn a total of 242.00 from holding Columbia Banking System or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Banking System vs. Glacier Bancorp
Performance |
| Timeline |
| Columbia Banking System |
| Glacier Bancorp |
Columbia Banking and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Banking and Glacier Bancorp
The main advantage of trading using opposite Columbia Banking and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Banking 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.| Columbia Banking vs. Glacier Bancorp | Columbia Banking vs. CVB Financial | Columbia Banking vs. Independent Bank Group | Columbia Banking vs. First Financial Bankshares |
| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Independent Bank Group | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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