Correlation Between Glacier Bancorp and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Barings BDC 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 Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Barings BDC, you can compare the effects of market volatilities on Glacier Bancorp and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Barings BDC.
Diversification Opportunities for Glacier Bancorp and Barings BDC
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glacier and Barings is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Barings BDC go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Barings BDC
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 2.13 times more return on investment than Barings BDC. However, Glacier Bancorp is 2.13 times more volatile than Barings BDC. It trades about 0.17 of its potential returns per unit of risk. Barings BDC is currently generating about 0.04 per unit of risk. If you would invest 3,666 in Glacier Bancorp on August 26, 2024 and sell it today you would earn a total of 2,167 from holding Glacier Bancorp or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. Barings BDC
Performance |
| Timeline |
| Glacier Bancorp |
| Barings BDC |
Glacier Bancorp and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Barings BDC
The main advantage of trading using opposite Glacier Bancorp and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC'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 |
| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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