Correlation Between GlaxoSmithKline PLC and Panda Financial
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Panda Financial Holding, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Panda Financial 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 Panda Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Panda Financial.
Diversification Opportunities for GlaxoSmithKline PLC and Panda Financial
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Panda is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Panda Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Financial Holding 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 Panda Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Financial Holding has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Panda Financial go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Panda Financial
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Panda Financial. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 2.59 times less risky than Panda Financial. The stock trades about -0.3 of its potential returns per unit of risk. The Panda Financial Holding is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Panda Financial Holding on August 28, 2024 and sell it today you would earn a total of 238.00 from holding Panda Financial Holding or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Panda Financial Holding
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Panda Financial Holding |
GlaxoSmithKline PLC and Panda Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Panda Financial
The main advantage of trading using opposite GlaxoSmithKline PLC and Panda Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Panda Financial 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 Panda Financial will offset losses from the drop in Panda Financial'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 |
| Panda Financial vs. BeiGene | Panda Financial vs. Kweichow Moutai Co | Panda Financial vs. Beijing Roborock Technology | Panda Financial vs. G bits Network 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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