Correlation Between GlaxoSmithKline PLC and UCloud Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and UCloud Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GlaxoSmithKline PLC and UCloud Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and UCloud Technology Co, you can compare the effects of market volatilities on GlaxoSmithKline PLC and UCloud Technology 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 UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and UCloud Technology.

Diversification Opportunities for GlaxoSmithKline PLC and UCloud Technology

-0.86
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GlaxoSmithKline and UCloud is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology 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 UCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCloud Technology has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and UCloud Technology go up and down completely randomly.

Pair Corralation between GlaxoSmithKline PLC and UCloud Technology

Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 10.83 times less return on investment than UCloud Technology. But when comparing it to its historical volatility, GlaxoSmithKline PLC ADR is 3.23 times less risky than UCloud Technology. It trades about 0.01 of its potential returns per unit of risk. UCloud Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,349  in UCloud Technology Co on August 28, 2024 and sell it today you would earn a total of  61.00  from holding UCloud Technology Co or generate 4.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy96.16%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  UCloud Technology Co

 Performance 
       Timeline  
GlaxoSmithKline PLC ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GlaxoSmithKline PLC ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
UCloud Technology 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in UCloud Technology Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, UCloud Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

GlaxoSmithKline PLC and UCloud Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and UCloud Technology

The main advantage of trading using opposite GlaxoSmithKline PLC and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, UCloud Technology 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 UCloud Technology will offset losses from the drop in UCloud Technology'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
The idea behind GlaxoSmithKline PLC ADR and UCloud Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
UCloud Technology vs. Kuangda Technology Group
UCloud Technology vs. Tianshui Huatian Technology
UCloud Technology vs. Andon Health Co
UCloud Technology vs. Anhui Huaren Health
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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Bonds Directory
Find actively traded corporate debentures issued by US companies
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY