Correlation Between Ihuman and Glacier Bancorp

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

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

Diversification Opportunities for Ihuman and Glacier Bancorp

-0.82

Correlation Coefficient

Ihuman  Glacier Bancorp

Pay attention - limited upside

The 3 months correlation between Ihuman and Glacier is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Glacier Bancorp go up and down completely randomly.

Pair Corralation between Ihuman and Glacier Bancorp

Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 3.13 times more return on investment than Glacier Bancorp. However, Ihuman is 3.13 times more volatile than Glacier Bancorp. It trades about 0.13 of its potential returns per unit of risk. Glacier Bancorp is currently generating about -0.11 per unit of risk. If you would invest  165.00  in Ihuman Inc on December 28, 2024 and sell it today you would earn a total of  60.00  from holding Ihuman Inc or generate 36.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ihuman Inc  vs.  Glacier Bancorp

Ihuman Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ihuman Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Ihuman demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 latest fragile performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Ihuman and Glacier Bancorp

The main advantage of trading using opposite Ihuman and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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 Ihuman Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.