Correlation Between Glacier Bancorp and Acceleron Pharma

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

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

Diversification Opportunities for Glacier Bancorp and Acceleron Pharma

0.0

Correlation Coefficient

Glacier Bancorp  Acceleron Pharma

Pay attention - limited upside

The 3 months correlation between Glacier and Acceleron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Acceleron Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acceleron Pharma 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 Acceleron Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acceleron Pharma has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Acceleron Pharma go up and down completely randomly.

Pair Corralation between Glacier Bancorp and Acceleron Pharma

If you would invest  3,792  in Glacier Bancorp on February 5, 2024 and sell it today you would lose (1.00) from holding Glacier Bancorp or give up 0.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Glacier Bancorp  vs.  Acceleron Pharma

Glacier Bancorp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Glacier Bancorp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Acceleron Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acceleron Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Acceleron Pharma is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Glacier Bancorp and Acceleron Pharma

The main advantage of trading using opposite Glacier Bancorp and Acceleron Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier Bancorp position performs unexpectedly, Acceleron Pharma 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 Acceleron Pharma will offset losses from the drop in Acceleron Pharma's long position.

The idea behind Glacier Bancorp and Acceleron Pharma 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 CEOs Directory module to screen CEOs from public companies around the world.