Correlation Between Eagle Financial and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both Eagle Financial 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 Eagle Financial and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Financial Services and Glacier Bancorp, you can compare the effects of market volatilities on Eagle Financial 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 Eagle Financial with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Glacier Bancorp.
Diversification Opportunities for Eagle Financial and Glacier Bancorp
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagle and Glacier is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Services and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and Eagle Financial 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 Eagle Financial Services 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 Eagle Financial i.e., Eagle Financial and Glacier Bancorp go up and down completely randomly.
Pair Corralation between Eagle Financial and Glacier Bancorp
Given the investment horizon of 90 days Eagle Financial Services is expected to under-perform the Glacier Bancorp. But the otc stock apears to be less risky and, when comparing its historical volatility, Eagle Financial Services is 4.18 times less risky than Glacier Bancorp. The otc stock trades about -0.34 of its potential returns per unit of risk. The Glacier Bancorp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,805 in Glacier Bancorp on January 25, 2024 and sell it today you would earn a total of 34.00 from holding Glacier Bancorp or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Financial Services vs. Glacier Bancorp
Performance |
| Timeline |
| Eagle Financial Services |
| Glacier Bancorp |
Eagle Financial and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Glacier Bancorp
The main advantage of trading using opposite Eagle Financial and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial 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.| Eagle Financial vs. Allspring Global Dividend | Eagle Financial vs. BNY Mellon High | Eagle Financial vs. Pioneer High Income | Eagle Financial vs. Allspring Utilities And |
| Glacier Bancorp vs. HMN Financial | Glacier Bancorp vs. Lake Shore Bancorp | Glacier Bancorp vs. Rhinebeck Bancorp |
Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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