Correlation Between GlaxoSmithKline PLC and Dawning Information
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and Dawning Information Industry, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Dawning Information.
Diversification Opportunities for GlaxoSmithKline PLC and Dawning Information
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Dawning is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Dawning Information go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Dawning Information
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 3.98 times less risky than Dawning Information. The stock trades about -0.23 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 6,120 in Dawning Information Industry on September 1, 2024 and sell it today you would earn a total of 2,360 from holding Dawning Information Industry or generate 38.56% 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. Dawning Information Industry
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Dawning Information |
GlaxoSmithKline PLC and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Dawning Information
The main advantage of trading using opposite GlaxoSmithKline PLC and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information'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 |
| Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Anhui Conch Cement | Dawning Information vs. Sungrow Power Supply | Dawning Information vs. Shenzhen New Nanshan |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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