Correlation Between Glacier Bancorp and Auburn National
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Auburn National 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 Auburn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Auburn National Bancorporation, you can compare the effects of market volatilities on Glacier Bancorp and Auburn National 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 Auburn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Auburn National.
Diversification Opportunities for Glacier Bancorp and Auburn National
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glacier and Auburn is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Auburn National Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn National Banc 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 Auburn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn National Banc has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Auburn National go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Auburn National
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 0.99 times more return on investment than Auburn National. However, Glacier Bancorp is 1.01 times less risky than Auburn National. It trades about 0.06 of its potential returns per unit of risk. Auburn National Bancorporation is currently generating about 0.02 per unit of risk. If you would invest 3,814 in Glacier Bancorp on November 9, 2024 and sell it today you would earn a total of 1,258 from holding Glacier Bancorp or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.25% |
| Values | Daily Returns |
Glacier Bancorp vs. Auburn National Bancorp.
Performance |
| Timeline |
| Glacier Bancorp |
| Auburn National Banc |
Glacier Bancorp and Auburn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Auburn National
The main advantage of trading using opposite Glacier Bancorp and Auburn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Auburn National 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 Auburn National will offset losses from the drop in Auburn National's long position.| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares | Glacier Bancorp vs. BancFirst |
| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |