Correlation Between Quotient and Glacier Bancorp

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

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

Diversification Opportunities for Quotient and Glacier Bancorp

-0.18

Correlation Coefficient

Quotient  Glacier Bancorp

Good diversification

The 3 months correlation between Quotient and Glacier is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Quotient Limited and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Quotient 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 Quotient Limited 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 Quotient i.e., Quotient and Glacier Bancorp go up and down completely randomly.

Pair Corralation between Quotient and Glacier Bancorp

If you would invest  4.00  in Quotient Limited on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Quotient Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Quotient Limited  vs.  Glacier Bancorp

Quotient Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quotient Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Quotient is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Glacier Bancorp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 3 (%) 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.

Pair Trading with Quotient and Glacier Bancorp

The main advantage of trading using opposite Quotient and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quotient 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 Quotient Limited 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.