Correlation Between GlaxoSmithKline PLC and Kingnet Network
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Kingnet Network Co, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Kingnet Network 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 Kingnet Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Kingnet Network.
Diversification Opportunities for GlaxoSmithKline PLC and Kingnet Network
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Kingnet is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Kingnet Network Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingnet Network 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 Kingnet Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingnet Network has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Kingnet Network go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Kingnet Network
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Kingnet Network. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 1.72 times less risky than Kingnet Network. The stock trades about -0.31 of its potential returns per unit of risk. The Kingnet Network Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,329 in Kingnet Network Co on August 28, 2024 and sell it today you would lose (66.00) from holding Kingnet Network Co or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Kingnet Network Co
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Kingnet Network |
GlaxoSmithKline PLC and Kingnet Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Kingnet Network
The main advantage of trading using opposite GlaxoSmithKline PLC and Kingnet Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Kingnet Network 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 Kingnet Network will offset losses from the drop in Kingnet Network's 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 |
| Kingnet Network vs. Ming Yang Smart | Kingnet Network vs. 159681 | Kingnet Network vs. 159005 | Kingnet Network vs. Loctek Ergonomic Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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