Correlation Between Glacier Bancorp and Noble Plc
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Noble Plc 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 Noble Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Noble plc, you can compare the effects of market volatilities on Glacier Bancorp and Noble Plc 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 Noble Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Noble Plc.
Diversification Opportunities for Glacier Bancorp and Noble Plc
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glacier and Noble is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Noble plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble plc 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 Noble Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble plc has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Noble Plc go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Noble Plc
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 0.97 times more return on investment than Noble Plc. However, Glacier Bancorp is 1.03 times less risky than Noble Plc. It trades about 0.18 of its potential returns per unit of risk. Noble plc is currently generating about -0.07 per unit of risk. If you would invest 3,471 in Glacier Bancorp on September 12, 2024 and sell it today you would earn a total of 2,092 from holding Glacier Bancorp or generate 60.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Glacier Bancorp vs. Noble plc
Performance |
| Timeline |
| Glacier Bancorp |
| Noble plc |
Glacier Bancorp and Noble Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Noble Plc
The main advantage of trading using opposite Glacier Bancorp and Noble Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Noble Plc 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 Noble Plc will offset losses from the drop in Noble Plc'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 |
| Noble Plc vs. Nabors Industries | Noble Plc vs. Borr Drilling | Noble Plc vs. Transocean | Noble Plc vs. Helmerich and Payne |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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