Correlation Between 655844CQ9 and Glacier Bancorp

Can any of the company-specific risk be diversified away by investing in both 655844CQ9 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 655844CQ9 and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NSC 445 01 MAR 33 and Glacier Bancorp, you can compare the effects of market volatilities on 655844CQ9 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 655844CQ9 with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 655844CQ9 and Glacier Bancorp.

Diversification Opportunities for 655844CQ9 and Glacier Bancorp

-0.14

Correlation Coefficient

655844CQ9  Glacier Bancorp

Good diversification

The 3 months correlation between 655844CQ9 and Glacier is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding NSC 445 01 MAR 33 and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and 655844CQ9 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 NSC 445 01 MAR 33 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 655844CQ9 i.e., 655844CQ9 and Glacier Bancorp go up and down completely randomly.

Pair Corralation between 655844CQ9 and Glacier Bancorp

Assuming the 90 days trading horizon NSC 445 01 MAR 33 is expected to generate 0.27 times more return on investment than Glacier Bancorp. However, NSC 445 01 MAR 33 is 3.71 times less risky than Glacier Bancorp. It trades about -0.04 of its potential returns per unit of risk. Glacier Bancorp is currently generating about -0.03 per unit of risk. If you would invest  9,494  in NSC 445 01 MAR 33 on October 26, 2024 and sell it today you would lose (34.00) from holding NSC 445 01 MAR 33 or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.95%
Values	Daily Returns

NSC 445 01 MAR 33  vs.  Glacier Bancorp

NSC 445 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 445 01 MAR 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 655844CQ9 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Glacier Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glacier Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Glacier Bancorp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with 655844CQ9 and Glacier Bancorp

The main advantage of trading using opposite 655844CQ9 and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 655844CQ9 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 NSC 445 01 MAR 33 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.