Correlation Between GlaxoSmithKline PLC and PF Atlantic
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By analyzing existing cross correlation between GlaxoSmithKline PLC ADR and PF Atlantic Petroleum, you can compare the effects of market volatilities on GlaxoSmithKline PLC and PF Atlantic 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 PF Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and PF Atlantic.
Diversification Opportunities for GlaxoSmithKline PLC and PF Atlantic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GlaxoSmithKline and ATLA-DKK is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and PF Atlantic go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and PF Atlantic
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to generate 0.33 times more return on investment than PF Atlantic. However, GlaxoSmithKline PLC ADR is 3.06 times less risky than PF Atlantic. It trades about 0.01 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about -0.05 per unit of risk. If you would invest 3,385 in GlaxoSmithKline PLC ADR on August 29, 2024 and sell it today you would earn a total of 17.00 from holding GlaxoSmithKline PLC ADR or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. PF Atlantic Petroleum
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| PF Atlantic Petroleum |
GlaxoSmithKline PLC and PF Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and PF Atlantic
The main advantage of trading using opposite GlaxoSmithKline PLC and PF Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, PF Atlantic 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 PF Atlantic will offset losses from the drop in PF Atlantic'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 |
| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. Orphazyme AS | PF Atlantic vs. TORM plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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