Correlation Between ACAFP and Glacier Bancorp
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By analyzing existing cross correlation between ACAFP 475 and Glacier Bancorp, you can compare the effects of market volatilities on ACAFP 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 ACAFP with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACAFP and Glacier Bancorp.
Diversification Opportunities for ACAFP and Glacier Bancorp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ACAFP and Glacier is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ACAFP 475 and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and ACAFP 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 ACAFP 475 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 ACAFP i.e., ACAFP and Glacier Bancorp go up and down completely randomly.
Pair Corralation between ACAFP and Glacier Bancorp
Assuming the 90 days trading horizon ACAFP 475 is expected to under-perform the Glacier Bancorp. But the bond apears to be less risky and, when comparing its historical volatility, ACAFP 475 is 1.02 times less risky than Glacier Bancorp. The bond trades about -0.09 of its potential returns per unit of risk. The Glacier Bancorp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,562 in Glacier Bancorp on September 3, 2024 and sell it today you would earn a total of 2,242 from holding Glacier Bancorp or generate 62.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.2% |
| Values | Daily Returns |
ACAFP 475 vs. Glacier Bancorp
Performance |
| Timeline |
| ACAFP 475 |
| Glacier Bancorp |
ACAFP and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACAFP and Glacier Bancorp
The main advantage of trading using opposite ACAFP and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACAFP 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 ACAFP 475 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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