Correlation Between GlaxoSmithKline PLC and Hagar Hf
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Hagar Hf 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 Hagar Hf 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 Hagar hf, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Hagar Hf 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 Hagar Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Hagar Hf.
Diversification Opportunities for GlaxoSmithKline PLC and Hagar Hf
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Hagar is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Hagar hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hagar hf 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 Hagar Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hagar hf has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Hagar Hf go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Hagar Hf
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Hagar Hf. In addition to that, GlaxoSmithKline PLC is 1.16 times more volatile than Hagar hf. It trades about -0.23 of its total potential returns per unit of risk. Hagar hf is currently generating about 0.22 per unit of volatility. If you would invest 9,500 in Hagar hf on September 1, 2024 and sell it today you would earn a total of 500.00 from holding Hagar hf or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Hagar hf
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Hagar hf |
GlaxoSmithKline PLC and Hagar Hf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Hagar Hf
The main advantage of trading using opposite GlaxoSmithKline PLC and Hagar Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Hagar Hf 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 Hagar Hf will offset losses from the drop in Hagar Hf'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 |
| Hagar Hf vs. Icelandair Group hf | Hagar Hf vs. Arion banki hf | Hagar Hf vs. Festi hf | Hagar Hf vs. Marel hf |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |