Correlation Between Glacier Bancorp and 50249AAF0

Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and 50249AAF0 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 Glacier Bancorp and 50249AAF0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glacier Bancorp and LYB 125 01 OCT 25, you can compare the effects of market volatilities on Glacier Bancorp and 50249AAF0 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 Glacier Bancorp with a short position of 50249AAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and 50249AAF0.

Diversification Opportunities for Glacier Bancorp and 50249AAF0

0.24

Correlation Coefficient

Glacier Bancorp  50249AAF0

Modest diversification

The 3 months correlation between Glacier and 50249AAF0 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and LYB 125 01 OCT 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 125 01 and Glacier Bancorp 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 Glacier Bancorp are associated (or correlated) with 50249AAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 125 01 has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and 50249AAF0 go up and down completely randomly.

Pair Corralation between Glacier Bancorp and 50249AAF0

Given the investment horizon of 90 days Glacier Bancorp is expected to under-perform the 50249AAF0. In addition to that, Glacier Bancorp is 19.46 times more volatile than LYB 125 01 OCT 25. It trades about -0.31 of its total potential returns per unit of risk. LYB 125 01 OCT 25 is currently generating about 0.15 per unit of volatility. If you would invest  9,720  in LYB 125 01 OCT 25 on October 8, 2024 and sell it today you would earn a total of  19.00  from holding LYB 125 01 OCT 25 or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	78.95%
Values	Daily Returns

Glacier Bancorp  vs.  LYB 125 01 OCT 25

Glacier Bancorp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 7 (%) 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.

LYB 125 01

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LYB 125 01 OCT 25 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 50249AAF0 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Glacier Bancorp and 50249AAF0

The main advantage of trading using opposite Glacier Bancorp and 50249AAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, 50249AAF0 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 50249AAF0 will offset losses from the drop in 50249AAF0's long position.

The idea behind Glacier Bancorp and LYB 125 01 OCT 25 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.