Correlation Between Glacier Bancorp and Axos Financial
Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and Axos Financial 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 Glacier Bancorp and Axos Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glacier Bancorp and Axos Financial, you can compare the effects of market volatilities on Glacier Bancorp and Axos Financial 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 Glacier Bancorp with a short position of Axos Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Axos Financial.
Diversification Opportunities for Glacier Bancorp and Axos Financial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glacier and Axos is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Axos Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial and Glacier Bancorp 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 Glacier Bancorp are associated (or correlated) with Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Axos Financial go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Axos Financial
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.74 times more return on investment than Axos Financial. However, Glacier Bancorp is 1.74 times more volatile than Axos Financial. It trades about 0.01 of its potential returns per unit of risk. Axos Financial is currently generating about -0.02 per unit of risk. If you would invest 3,805 in Glacier Bancorp on January 25, 2024 and sell it today you would lose (12.00) from holding Glacier Bancorp or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. Axos Financial
Performance |
| Timeline |
| Glacier Bancorp |
| Axos Financial |
Glacier Bancorp and Axos Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Axos Financial
The main advantage of trading using opposite Glacier Bancorp and Axos Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Axos Financial 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 Axos Financial will offset losses from the drop in Axos Financial's long position.| Glacier Bancorp vs. CVB Financial | Glacier Bancorp vs. Independent Bank Group | Glacier Bancorp vs. Columbia Banking System | Glacier Bancorp vs. First Financial Bankshares |
| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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