Correlation Between Global E and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Global E and Glacier Bancorp 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 Global E and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Glacier Bancorp, you can compare the effects of market volatilities on Global E and Glacier Bancorp 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 Global E with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Glacier Bancorp.
Diversification Opportunities for Global E and Glacier Bancorp
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Glacier is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Global E 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 Global E Online are associated (or correlated) with Glacier Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Bancorp has no effect on the direction of Global E i.e., Global E and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Global E and Glacier Bancorp
Given the investment horizon of 90 days Global E Online is expected to generate 1.31 times more return on investment than Glacier Bancorp. However, Global E is 1.31 times more volatile than Glacier Bancorp. It trades about 0.07 of its potential returns per unit of risk. Glacier Bancorp is currently generating about 0.02 per unit of risk. If you would invest 2,202 in Global E Online on August 26, 2024 and sell it today you would earn a total of 2,787 from holding Global E Online or generate 126.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. Glacier Bancorp
Performance |
| Timeline |
| Global E Online |
| Glacier Bancorp |
Global E and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Glacier Bancorp
The main advantage of trading using opposite Global E and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Glacier Bancorp 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 Glacier Bancorp will offset losses from the drop in Glacier Bancorp's long position.The idea behind Global E Online and Glacier Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Independent Bank Group | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |