Correlation Between Glacier Bancorp and Malaga Financial
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Malaga Financial 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 Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Malaga Financial, you can compare the effects of market volatilities on Glacier Bancorp and Malaga Financial 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 Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Malaga Financial.
Diversification Opportunities for Glacier Bancorp and Malaga Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glacier and Malaga is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial 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 Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Malaga Financial go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Malaga Financial
Given the investment horizon of 90 days Glacier Bancorp is expected to under-perform the Malaga Financial. But the stock apears to be less risky and, when comparing its historical volatility, Glacier Bancorp is 1.02 times less risky than Malaga Financial. The stock trades about -0.41 of its potential returns per unit of risk. The Malaga Financial is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,295 in Malaga Financial on October 14, 2024 and sell it today you would lose (95.00) from holding Malaga Financial or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. Malaga Financial
Performance |
| Timeline |
| Glacier Bancorp |
| Malaga Financial |
Glacier Bancorp and Malaga Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Malaga Financial
The main advantage of trading using opposite Glacier Bancorp and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Malaga Financial 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares | Glacier Bancorp vs. BancFirst |
| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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