Correlation Between Glacier Bancorp and Triumph Financial
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Triumph 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 Triumph 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 Triumph Financial, you can compare the effects of market volatilities on Glacier Bancorp and Triumph 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 Triumph Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Triumph Financial.
Diversification Opportunities for Glacier Bancorp and Triumph Financial
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glacier and Triumph is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Triumph Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph 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 Triumph Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Financial has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Triumph Financial go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Triumph Financial
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 0.5 times more return on investment than Triumph Financial. However, Glacier Bancorp is 2.02 times less risky than Triumph Financial. It trades about 0.0 of its potential returns per unit of risk. Triumph Financial is currently generating about -0.16 per unit of risk. If you would invest 4,966 in Glacier Bancorp on November 3, 2024 and sell it today you would lose (11.00) from holding Glacier Bancorp or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Glacier Bancorp vs. Triumph Financial
Performance |
| Timeline |
| Glacier Bancorp |
| Triumph Financial |
Glacier Bancorp and Triumph Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Triumph Financial
The main advantage of trading using opposite Glacier Bancorp and Triumph Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Triumph 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 Triumph Financial will offset losses from the drop in Triumph 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 |
| Triumph Financial vs. First Capital | Triumph Financial vs. Finward Bancorp | Triumph Financial vs. Community West Bancshares | Triumph Financial vs. QCR Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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