Correlation Between GlaxoSmithKline PLC and Cogelec SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Cogelec SA 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 Cogelec SA 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 Cogelec SA, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Cogelec SA 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 Cogelec SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Cogelec SA.

Diversification Opportunities for GlaxoSmithKline PLC and Cogelec SA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GlaxoSmithKline and Cogelec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Cogelec SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogelec SA 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 Cogelec SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogelec SA has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Cogelec SA go up and down completely randomly.

Pair Corralation between GlaxoSmithKline PLC and Cogelec SA

If you would invest (100.00) in Cogelec SA on August 30, 2024 and sell it today you would earn a total of  100.00  from holding Cogelec SA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  Cogelec SA

 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.
Cogelec SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Solid
Over the last 90 days Cogelec SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Cogelec SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

GlaxoSmithKline PLC and Cogelec SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and Cogelec SA

The main advantage of trading using opposite GlaxoSmithKline PLC and Cogelec SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Cogelec SA 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 Cogelec SA will offset losses from the drop in Cogelec SA'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 Cogelec SA 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.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance


 
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