Correlation Between GlaxoSmithKline PLC and Lander Sports

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Lander Sports 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 GlaxoSmithKline PLC and Lander Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Lander Sports Development, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Lander Sports 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 GlaxoSmithKline PLC with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Lander Sports.

Diversification Opportunities for GlaxoSmithKline PLC and Lander Sports

-0.87
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between GlaxoSmithKline PLC and Lander Sports

Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Lander Sports. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 2.91 times less risky than Lander Sports. The stock trades about -0.3 of its potential returns per unit of risk. The Lander Sports Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  283.00  in Lander Sports Development on August 25, 2024 and sell it today you would earn a total of  8.00  from holding Lander Sports Development or generate 2.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  Lander Sports Development

 Performance 
       Timeline  
GlaxoSmithKline PLC ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GlaxoSmithKline PLC ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Lander Sports Development 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Lander Sports Development are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Lander Sports sustained solid returns over the last few months and may actually be approaching a breakup point.

GlaxoSmithKline PLC and Lander Sports Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and Lander Sports

The main advantage of trading using opposite GlaxoSmithKline PLC and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.
GlaxoSmithKline PLC vs. Novartis AG ADR
GlaxoSmithKline PLC vs. AstraZeneca PLC ADR
GlaxoSmithKline PLC vs. Roche Holding Ltd
GlaxoSmithKline PLC vs. Bristol Myers Squibb
The idea behind GlaxoSmithKline PLC ADR and Lander Sports Development 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.
Lander Sports vs. Miracll Chemicals Co
Lander Sports vs. Shanghai Rightongene Biotechnology
Lander Sports vs. Hubei Dinglong Chemical
Lander Sports vs. Liuzhou Chemical Industry
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 Transaction History module to view history of all your transactions and understand their impact on performance.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Stocks Directory
Find actively traded stocks across global markets
Fundamental Analysis
View fundamental data based on most recent published financial statements


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY