Correlation Between Glacier Bancorp and Exagen

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

By analyzing existing cross correlation between Glacier Bancorp and Exagen Inc, you can compare the effects of market volatilities on Glacier Bancorp and Exagen 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 Exagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Exagen.

Diversification Opportunities for Glacier Bancorp and Exagen

0.36

Correlation Coefficient

Glacier Bancorp  Exagen

Weak diversification

The 3 months correlation between Glacier and Exagen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Exagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exagen Inc 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 Exagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exagen Inc has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Exagen go up and down completely randomly.

Pair Corralation between Glacier Bancorp and Exagen

Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.75 times less return on investment than Exagen. But when comparing it to its historical volatility, Glacier Bancorp is 3.08 times less risky than Exagen. It trades about 0.08 of its potential returns per unit of risk. Exagen Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  294.00  in Exagen Inc on October 5, 2024 and sell it today you would earn a total of  15.00  from holding Exagen Inc or generate 5.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Glacier Bancorp  vs.  Exagen Inc

Glacier Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Glacier Bancorp may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Exagen Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Exagen Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Exagen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Glacier Bancorp and Exagen

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

The idea behind Glacier Bancorp and Exagen Inc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.