Correlation Between Glacier Bancorp and BancFirst
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and BancFirst 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 BancFirst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and BancFirst, you can compare the effects of market volatilities on Glacier Bancorp and BancFirst 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 BancFirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and BancFirst.
Diversification Opportunities for Glacier Bancorp and BancFirst
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Glacier and BancFirst is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and BancFirst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BancFirst 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 BancFirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BancFirst has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and BancFirst go up and down completely randomly.
Pair Corralation between Glacier Bancorp and BancFirst
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.0 times less return on investment than BancFirst. In addition to that, Glacier Bancorp is 1.23 times more volatile than BancFirst. It trades about 0.05 of its total potential returns per unit of risk. BancFirst is currently generating about 0.06 per unit of volatility. If you would invest 7,997 in BancFirst on August 24, 2024 and sell it today you would earn a total of 4,631 from holding BancFirst or generate 57.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. BancFirst
Performance |
| Timeline |
| Glacier Bancorp |
| BancFirst |
Glacier Bancorp and BancFirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and BancFirst
The main advantage of trading using opposite Glacier Bancorp and BancFirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, BancFirst 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 BancFirst will offset losses from the drop in BancFirst'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 |
| BancFirst vs. Glacier Bancorp | BancFirst vs. BOK Financial | BancFirst vs. First Financial Bancorp | BancFirst vs. First 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |