Correlation Between GlaxoSmithKline PLC and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and MiraeAsset TIGER 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 MiraeAsset TIGER 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 MiraeAsset TIGER Inverse, you can compare the effects of market volatilities on GlaxoSmithKline PLC and MiraeAsset TIGER 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 MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and MiraeAsset TIGER.
Diversification Opportunities for GlaxoSmithKline PLC and MiraeAsset TIGER
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and MiraeAsset is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and MiraeAsset TIGER Inverse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Inverse 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 MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER Inverse has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and MiraeAsset TIGER
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to generate 1.14 times more return on investment than MiraeAsset TIGER. However, GlaxoSmithKline PLC is 1.14 times more volatile than MiraeAsset TIGER Inverse. It trades about 0.01 of its potential returns per unit of risk. MiraeAsset TIGER Inverse is currently generating about 0.0 per unit of risk. If you would invest 3,251 in GlaxoSmithKline PLC ADR on August 24, 2024 and sell it today you would earn a total of 119.00 from holding GlaxoSmithKline PLC ADR or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. MiraeAsset TIGER Inverse
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| MiraeAsset TIGER Inverse |
GlaxoSmithKline PLC and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and MiraeAsset TIGER
The main advantage of trading using opposite GlaxoSmithKline PLC and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER'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 |
| MiraeAsset TIGER vs. MiraeAsset TIGER Quality | MiraeAsset TIGER vs. MiraeAsset TIGER NIKKEI225 | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Morningstar | MiraeAsset TIGER vs. MiraeAsset TIGER 200 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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