Correlation Between GlaxoSmithKline PLC and Grupo Carso

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

Diversification Opportunities for GlaxoSmithKline PLC and Grupo Carso

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between GlaxoSmithKline and Grupo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB 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 Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Grupo Carso go up and down completely randomly.

Pair Corralation between GlaxoSmithKline PLC and Grupo Carso

Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 2.28 times less return on investment than Grupo Carso. But when comparing it to its historical volatility, GlaxoSmithKline PLC ADR is 1.8 times less risky than Grupo Carso. It trades about 0.02 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  11,399  in Grupo Carso SAB on August 31, 2024 and sell it today you would earn a total of  773.00  from holding Grupo Carso SAB or generate 6.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  Grupo Carso SAB

 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.
Grupo Carso SAB 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Carso SAB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Grupo Carso is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

GlaxoSmithKline PLC and Grupo Carso Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and Grupo Carso

The main advantage of trading using opposite GlaxoSmithKline PLC and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso'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 Grupo Carso SAB 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.
Grupo Carso vs. Grupo Financiero Inbursa
Grupo Carso vs. Alfa SAB de
Grupo Carso vs. Kimberly Clark de Mxico
Grupo Carso vs. Grupo Televisa SAB
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Content Syndication
Quickly integrate customizable finance content to your own investment portal
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