Correlation Between Glacier Bancorp and CVB Financial

Can any of the company-specific risk be diversified away by investing in both Glacier Bancorp and CVB 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 CVB 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 CVB Financial, you can compare the effects of market volatilities on Glacier Bancorp and CVB 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 CVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and CVB Financial.

Diversification Opportunities for Glacier Bancorp and CVB Financial

0.87

Correlation Coefficient

Glacier Bancorp  CVB Financial

Very poor diversification

The 3 months correlation between Glacier and CVB is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Bancorp and CVB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVB 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 CVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVB Financial has no effect on the direction of Glacier Bancorp i.e., Glacier Bancorp and CVB Financial go up and down completely randomly.

Pair Corralation between Glacier Bancorp and CVB Financial

Given the investment horizon of 90 days Glacier Bancorp is expected to generate 1.16 times more return on investment than CVB Financial. However, Glacier Bancorp is 1.16 times more volatile than CVB Financial. It trades about 0.05 of its potential returns per unit of risk. CVB Financial is currently generating about 0.01 per unit of risk. If you would invest  4,080  in Glacier Bancorp on May 6, 2025 and sell it today you would earn a total of  206.00  from holding Glacier Bancorp or generate 5.05% return on investment over 90 days.

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

Glacier Bancorp  vs.  CVB Financial

Glacier Bancorp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glacier Bancorp are ranked lower than 3 (%) 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.

CVB Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days CVB Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, CVB Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Glacier Bancorp and CVB Financial

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

The idea behind Glacier Bancorp and CVB Financial 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.