Correlation Between Glacier Bancorp and ANZ Group
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and ANZ Group 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 Glacier Bancorp and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and ANZ Group Holdings, you can compare the effects of market volatilities on Glacier Bancorp and ANZ Group 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 Glacier Bancorp with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and ANZ Group.
Diversification Opportunities for Glacier Bancorp and ANZ Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glacier and ANZ is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings and Glacier Bancorp 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 Glacier Bancorp are associated (or correlated) with ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and ANZ Group go up and down completely randomly.
Pair Corralation between Glacier Bancorp and ANZ Group
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.92 times more return on investment than ANZ Group. However, Glacier Bancorp is 1.92 times more volatile than ANZ Group Holdings. It trades about 0.07 of its potential returns per unit of risk. ANZ Group Holdings is currently generating about 0.09 per unit of risk. If you would invest 3,269 in Glacier Bancorp on August 31, 2024 and sell it today you would earn a total of 2,520 from holding Glacier Bancorp or generate 77.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Glacier Bancorp vs. ANZ Group Holdings
Performance |
| Timeline |
| Glacier Bancorp |
| ANZ Group Holdings |
Glacier Bancorp and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and ANZ Group
The main advantage of trading using opposite Glacier Bancorp and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, ANZ Group 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 ANZ Group will offset losses from the drop in ANZ Group's long position.| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Independent Bank Group | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares |
| ANZ Group vs. JPMorgan Chase Co | ANZ Group vs. JPMorgan Chase Co | ANZ Group vs. Bank of America | ANZ Group vs. Empire State Realty |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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