Correlation Between GlaxoSmithKline PLC and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Marblegate Acquisition 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 Marblegate Acquisition 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 Marblegate Acquisition Corp, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Marblegate Acquisition 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 Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Marblegate Acquisition.
Diversification Opportunities for GlaxoSmithKline PLC and Marblegate Acquisition
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GlaxoSmithKline and Marblegate is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Marblegate Acquisition
Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 1.23 times less return on investment than Marblegate Acquisition. In addition to that, GlaxoSmithKline PLC is 2.98 times more volatile than Marblegate Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,015 in Marblegate Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 98.00 from holding Marblegate Acquisition Corp or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Marblegate Acquisition |
GlaxoSmithKline PLC and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Marblegate Acquisition
The main advantage of trading using opposite GlaxoSmithKline PLC and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition'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 |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. Hudson Acquisition I | Marblegate Acquisition vs. DP Cap Acquisition |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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