Correlation Between Golden Matrix and Glacier Bancorp

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

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

Diversification Opportunities for Golden Matrix and Glacier Bancorp

0.46

Correlation Coefficient

Golden Matrix  Glacier Bancorp

Very weak diversification

The 3 months correlation between Golden and Glacier is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Golden Matrix 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 Golden Matrix 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 Golden Matrix i.e., Golden Matrix and Glacier Bancorp go up and down completely randomly.

Pair Corralation between Golden Matrix and Glacier Bancorp

Given the investment horizon of 90 days Golden Matrix is expected to generate 3.41 times less return on investment than Glacier Bancorp. In addition to that, Golden Matrix is 2.78 times more volatile than Glacier Bancorp. It trades about 0.0 of its total potential returns per unit of risk. Glacier Bancorp is currently generating about 0.04 per unit of volatility. If you would invest  3,877  in Glacier Bancorp on December 5, 2024 and sell it today you would earn a total of  656.00  from holding Glacier Bancorp or generate 16.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.56%
Values	Daily Returns

Golden Matrix Group  vs.  Glacier Bancorp

Golden Matrix Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Matrix Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Golden Matrix is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Glacier Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glacier Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Golden Matrix and Glacier Bancorp

The main advantage of trading using opposite Golden Matrix and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix 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 Golden Matrix 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.