Correlation Between GlaxoSmithKline PLC and Boxed
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Boxed 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 Boxed 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 Boxed Inc, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Boxed 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 Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Boxed.
Diversification Opportunities for GlaxoSmithKline PLC and Boxed
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GlaxoSmithKline and Boxed is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc 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 Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Boxed go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Boxed
If you would invest 0.01 in Boxed Inc on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Boxed Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Boxed Inc
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GlaxoSmithKline PLC and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Boxed
The main advantage of trading using opposite GlaxoSmithKline PLC and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed'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 |
| Boxed vs. Sun Country Airlines | Boxed vs. Meli Hotels International | Boxed vs. Shake Shack | Boxed vs. Park Hotels Resorts |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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