Correlation Between Eldorado Gold and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Eldorado Gold 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 Eldorado Gold and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eldorado Gold Corp and Glacier Bancorp, you can compare the effects of market volatilities on Eldorado Gold 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 Eldorado Gold with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldorado Gold and Glacier Bancorp.
Diversification Opportunities for Eldorado Gold and Glacier Bancorp
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eldorado and Glacier is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eldorado Gold Corp and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Eldorado Gold 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 Eldorado Gold Corp 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 Eldorado Gold i.e., Eldorado Gold and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Eldorado Gold and Glacier Bancorp
Considering the 90-day investment horizon Eldorado Gold is expected to generate 1.19 times less return on investment than Glacier Bancorp. In addition to that, Eldorado Gold is 1.01 times more volatile than Glacier Bancorp. It trades about 0.06 of its total potential returns per unit of risk. Glacier Bancorp is currently generating about 0.07 per unit of volatility. If you would invest 3,351 in Glacier Bancorp on September 12, 2024 and sell it today you would earn a total of 2,212 from holding Glacier Bancorp or generate 66.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldorado Gold Corp vs. Glacier Bancorp
Performance |
| Timeline |
| Eldorado Gold Corp |
| Glacier Bancorp |
Eldorado Gold and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldorado Gold and Glacier Bancorp
The main advantage of trading using opposite Eldorado Gold and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldorado Gold 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.| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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