Correlation Between Great Southern and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Great Southern 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 Great Southern and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Southern Bancorp and Glacier Bancorp, you can compare the effects of market volatilities on Great Southern 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 Great Southern with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Glacier Bancorp.
Diversification Opportunities for Great Southern and Glacier Bancorp
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Glacier is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Great Southern 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 Great Southern Bancorp 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 Great Southern i.e., Great Southern and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Great Southern and Glacier Bancorp
Given the investment horizon of 90 days Great Southern Bancorp is expected to generate 0.97 times more return on investment than Glacier Bancorp. However, Great Southern Bancorp is 1.03 times less risky than Glacier Bancorp. It trades about 0.1 of its potential returns per unit of risk. Glacier Bancorp is currently generating about 0.09 per unit of risk. If you would invest 5,856 in Great Southern Bancorp on November 9, 2024 and sell it today you would earn a total of 210.00 from holding Great Southern Bancorp or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Southern Bancorp vs. Glacier Bancorp
Performance |
| Timeline |
| Great Southern Bancorp |
| Glacier Bancorp |
Great Southern and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Glacier Bancorp
The main advantage of trading using opposite Great Southern and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern 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.| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares | Glacier Bancorp vs. BancFirst |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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