Correlation Between GlaxoSmithKline PLC and China Marine
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and China Marine Information, you can compare the effects of market volatilities on GlaxoSmithKline PLC and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and China Marine.
Diversification Opportunities for GlaxoSmithKline PLC and China Marine
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and China is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and China Marine go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and China Marine
Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 2.09 times less return on investment than China Marine. But when comparing it to its historical volatility, GlaxoSmithKline PLC ADR is 2.05 times less risky than China Marine. It trades about 0.01 of its potential returns per unit of risk. China Marine Information is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,641 in China Marine Information on September 1, 2024 and sell it today you would earn a total of 48.00 from holding China Marine Information or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.24% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. China Marine Information
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| China Marine Information |
GlaxoSmithKline PLC and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and China Marine
The main advantage of trading using opposite GlaxoSmithKline PLC and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine'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 |
| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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