Correlation Between Evolution Gaming and Glacier Bancorp

Can any of the company-specific risk be diversified away by investing in both Evolution Gaming 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 Evolution Gaming and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evolution Gaming Group and Glacier Bancorp, you can compare the effects of market volatilities on Evolution Gaming 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 Evolution Gaming with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Glacier Bancorp.

Diversification Opportunities for Evolution Gaming and Glacier Bancorp

-0.74

Correlation Coefficient

Evolution Gaming  Glacier Bancorp

Pay attention - limited upside

The 3 months correlation between Evolution and Glacier is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Evolution Gaming 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 Evolution Gaming Group 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 Evolution Gaming i.e., Evolution Gaming and Glacier Bancorp go up and down completely randomly.

Pair Corralation between Evolution Gaming and Glacier Bancorp

Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Glacier Bancorp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.31 times less risky than Glacier Bancorp. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Glacier Bancorp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,417  in Glacier Bancorp on September 17, 2024 and sell it today you would earn a total of  1,046  from holding Glacier Bancorp or generate 23.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.78%
Values	Daily Returns

Evolution Gaming Group  vs.  Glacier Bancorp

Evolution Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evolution Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Glacier Bancorp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Glacier Bancorp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Evolution Gaming and Glacier Bancorp

The main advantage of trading using opposite Evolution Gaming and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming 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 Evolution Gaming Group 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.