Correlation Between GlaxoSmithKline PLC and Sino Wealth
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Sino Wealth Electronic, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Sino Wealth 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 Sino Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Sino Wealth.
Diversification Opportunities for GlaxoSmithKline PLC and Sino Wealth
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Sino is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Sino Wealth Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Wealth Electronic 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 Sino Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Wealth Electronic has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Sino Wealth go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Sino Wealth
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Sino Wealth. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 2.62 times less risky than Sino Wealth. The stock trades about -0.31 of its potential returns per unit of risk. The Sino Wealth Electronic is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,604 in Sino Wealth Electronic on August 29, 2024 and sell it today you would lose (181.00) from holding Sino Wealth Electronic or give up 6.95% 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. Sino Wealth Electronic
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Sino Wealth Electronic |
GlaxoSmithKline PLC and Sino Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Sino Wealth
The main advantage of trading using opposite GlaxoSmithKline PLC and Sino Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Sino Wealth 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 Sino Wealth will offset losses from the drop in Sino Wealth'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 |
| Sino Wealth vs. Lutian Machinery Co | Sino Wealth vs. China Longyuan Power | Sino Wealth vs. Changshu Tongrun Auto | Sino Wealth vs. PetroChina Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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