Correlation Between Entegris and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Entegris 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 Entegris and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Glacier Bancorp, you can compare the effects of market volatilities on Entegris 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 Entegris with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Glacier Bancorp.
Diversification Opportunities for Entegris and Glacier Bancorp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Entegris and Glacier is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Entegris 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 Entegris 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 Entegris i.e., Entegris and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Entegris and Glacier Bancorp
Given the investment horizon of 90 days Entegris is expected to generate 1.55 times more return on investment than Glacier Bancorp. However, Entegris is 1.55 times more volatile than Glacier Bancorp. It trades about -0.15 of its potential returns per unit of risk. Glacier Bancorp is currently generating about -0.36 per unit of risk. If you would invest 10,940 in Entegris on October 7, 2024 and sell it today you would lose (880.00) from holding Entegris or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Glacier Bancorp
Performance |
| Timeline |
| Entegris |
| Glacier Bancorp |
Entegris and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Glacier Bancorp
The main advantage of trading using opposite Entegris and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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