Correlation Between Glacier Bancorp and GAIL (India)
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and GAIL (India) 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 GAIL (India) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and GAIL Limited, you can compare the effects of market volatilities on Glacier Bancorp and GAIL (India) 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 GAIL (India). Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and GAIL (India).
Diversification Opportunities for Glacier Bancorp and GAIL (India)
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glacier and GAIL is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and GAIL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAIL Limited 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 GAIL (India). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAIL Limited has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and GAIL (India) go up and down completely randomly.
Pair Corralation between Glacier Bancorp and GAIL (India)
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.52 times more return on investment than GAIL (India). However, Glacier Bancorp is 1.52 times more volatile than GAIL Limited. It trades about 0.2 of its potential returns per unit of risk. GAIL Limited is currently generating about 0.22 per unit of risk. If you would invest 5,094 in Glacier Bancorp on September 5, 2024 and sell it today you would earn a total of 635.00 from holding Glacier Bancorp or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Glacier Bancorp vs. GAIL Limited
Performance |
| Timeline |
| Glacier Bancorp |
| GAIL Limited |
Glacier Bancorp and GAIL (India) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and GAIL (India)
The main advantage of trading using opposite Glacier Bancorp and GAIL (India) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, GAIL (India) 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 GAIL (India) will offset losses from the drop in GAIL (India)'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 |
| GAIL (India) vs. Montauk Renewables | GAIL (India) vs. Univest Pennsylvania | GAIL (India) vs. Artisan Partners Asset | GAIL (India) vs. Glacier 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |