Correlation Between Sable Offshore and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Sable Offshore 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 Sable Offshore and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Offshore Corp and Glacier Bancorp, you can compare the effects of market volatilities on Sable Offshore 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 Sable Offshore with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and Glacier Bancorp.
Diversification Opportunities for Sable Offshore and Glacier Bancorp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sable and Glacier is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Sable Offshore 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 Sable Offshore Corp 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 Sable Offshore i.e., Sable Offshore and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Sable Offshore and Glacier Bancorp
Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 1.51 times more return on investment than Glacier Bancorp. However, Sable Offshore is 1.51 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 0.07 per unit of risk. If you would invest 1,030 in Sable Offshore Corp on September 12, 2024 and sell it today you would earn a total of 998.00 from holding Sable Offshore Corp or generate 96.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sable Offshore Corp vs. Glacier Bancorp
Performance |
| Timeline |
| Sable Offshore Corp |
| Glacier Bancorp |
Sable Offshore and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and Glacier Bancorp
The main advantage of trading using opposite Sable Offshore and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore 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.| Sable Offshore vs. Stepan Company | Sable Offshore vs. WPP PLC ADR | Sable Offshore vs. Avient Corp | Sable Offshore vs. CF Industries Holdings |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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