Correlation Between Glacier Bancorp and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Eldorado Gold 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 Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Eldorado Gold Corp, you can compare the effects of market volatilities on Glacier Bancorp and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Eldorado Gold.
Diversification Opportunities for Glacier Bancorp and Eldorado Gold
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Glacier and Eldorado is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Eldorado Gold go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Eldorado Gold
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 0.98 times more return on investment than Eldorado Gold. However, Glacier Bancorp is 1.02 times less risky than Eldorado Gold. It trades about 0.09 of its potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 3,717 in Glacier Bancorp on September 4, 2024 and sell it today you would earn a total of 2,012 from holding Glacier Bancorp or generate 54.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. Eldorado Gold Corp
Performance |
| Timeline |
| Glacier Bancorp |
| Eldorado Gold Corp |
Glacier Bancorp and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Eldorado Gold
The main advantage of trading using opposite Glacier Bancorp and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold'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 |
| Eldorado Gold vs. Constellium Nv | Eldorado Gold vs. Century Aluminum | Eldorado Gold vs. China Hongqiao Group | Eldorado Gold vs. Kaiser Aluminum |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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