Correlation Between GlaxoSmithKline PLC and Wuhan Hvsen
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Wuhan Hvsen.
Diversification Opportunities for GlaxoSmithKline PLC and Wuhan Hvsen
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Wuhan is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Wuhan Hvsen
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 1.93 times less risky than Wuhan Hvsen. The stock trades about -0.23 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Wuhan Hvsen Biotechnology on September 1, 2024 and sell it today you would earn a total of 143.00 from holding Wuhan Hvsen Biotechnology or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Wuhan Hvsen Biotechnology |
GlaxoSmithKline PLC and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Wuhan Hvsen
The main advantage of trading using opposite GlaxoSmithKline PLC and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen'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 |
| Wuhan Hvsen vs. PetroChina Co Ltd | Wuhan Hvsen vs. China Mobile Limited | Wuhan Hvsen vs. CNOOC Limited | Wuhan Hvsen vs. Ping An Insurance |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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