Correlation Between Glacier Bancorp and Auburn National

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

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

Diversification Opportunities for Glacier Bancorp and Auburn National

0.41

Correlation Coefficient

Glacier Bancorp  Auburn National

Very weak diversification

The 3 months correlation between Glacier and Auburn is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and Auburn National Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn National Banc 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 Auburn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn National Banc has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and Auburn National go up and down completely randomly.

Pair Corralation between Glacier Bancorp and Auburn National

Given the investment horizon of 90 days Glacier Bancorp is expected to under-perform the Auburn National. In addition to that, Glacier Bancorp is 1.31 times more volatile than Auburn National Bancorporation. It trades about 0.0 of its total potential returns per unit of risk. Auburn National Bancorporation is currently generating about 0.15 per unit of volatility. If you would invest  2,137  in Auburn National Bancorporation on September 26, 2024 and sell it today you would earn a total of  243.00  from holding Auburn National Bancorporation or generate 11.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Glacier Bancorp  vs.  Auburn National Bancorp.

Glacier Bancorp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Glacier Bancorp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Auburn National Banc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Auburn National Bancorporation are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, Auburn National is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Glacier Bancorp and Auburn National

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

The idea behind Glacier Bancorp and Auburn National Bancorporation 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.