Correlation Between Glacier Bancorp and ECOLAB
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By analyzing existing cross correlation between Glacier Bancorp and ECOLAB INC 325, you can compare the effects of market volatilities on Glacier Bancorp and ECOLAB 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 ECOLAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and ECOLAB.
Diversification Opportunities for Glacier Bancorp and ECOLAB
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glacier and ECOLAB is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and ECOLAB INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECOLAB INC 325 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 ECOLAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECOLAB INC 325 has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and ECOLAB go up and down completely randomly.
Pair Corralation between Glacier Bancorp and ECOLAB
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 10.36 times more return on investment than ECOLAB. However, Glacier Bancorp is 10.36 times more volatile than ECOLAB INC 325. It trades about 0.16 of its potential returns per unit of risk. ECOLAB INC 325 is currently generating about -0.11 per unit of risk. If you would invest 4,641 in Glacier Bancorp on September 3, 2024 and sell it today you would earn a total of 1,148 from holding Glacier Bancorp or generate 24.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Glacier Bancorp vs. ECOLAB INC 325
Performance |
| Timeline |
| Glacier Bancorp |
| ECOLAB INC 325 |
Glacier Bancorp and ECOLAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and ECOLAB
The main advantage of trading using opposite Glacier Bancorp and ECOLAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, ECOLAB 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 ECOLAB will offset losses from the drop in ECOLAB'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 |
| ECOLAB vs. Glacier Bancorp | ECOLAB vs. AmTrust Financial Services | ECOLAB vs. Fomento Economico Mexicano | ECOLAB vs. Suntory Beverage Food |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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