Correlation Between Uber Technologies and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Uber Technologies 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 Uber Technologies and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Glacier Bancorp, you can compare the effects of market volatilities on Uber Technologies 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 Uber Technologies with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Glacier Bancorp.
Diversification Opportunities for Uber Technologies and Glacier Bancorp
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and Glacier is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Uber Technologies 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 Uber Technologies 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 Uber Technologies i.e., Uber Technologies and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Uber Technologies and Glacier Bancorp
Given the investment horizon of 90 days Uber Technologies is expected to generate 2.05 times less return on investment than Glacier Bancorp. In addition to that, Uber Technologies is 1.02 times more volatile than Glacier Bancorp. It trades about 0.04 of its total potential returns per unit of risk. Glacier Bancorp is currently generating about 0.09 per unit of volatility. If you would invest 3,587 in Glacier Bancorp on August 29, 2024 and sell it today you would earn a total of 2,251 from holding Glacier Bancorp or generate 62.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Glacier Bancorp
Performance |
| Timeline |
| Uber Technologies |
| Glacier Bancorp |
Uber Technologies and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Glacier Bancorp
The main advantage of trading using opposite Uber Technologies and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies 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.| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
| Glacier Bancorp vs. Fifth Third Bancorp | Glacier Bancorp vs. Huntington Bancshares Incorporated | Glacier Bancorp vs. MT Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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