Correlation Between GlaxoSmithKline PLC and Cue Health
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Cue Health 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 Cue Health 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 Cue Health, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Cue Health 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 Cue Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Cue Health.
Diversification Opportunities for GlaxoSmithKline PLC and Cue Health
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GlaxoSmithKline and Cue is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health 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 Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Cue Health go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Cue Health
If you would invest (100.00) in Cue Health on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Cue Health or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Cue Health
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Cue Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GlaxoSmithKline PLC and Cue Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Cue Health
The main advantage of trading using opposite GlaxoSmithKline PLC and Cue Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Cue Health 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 Cue Health will offset losses from the drop in Cue Health'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 |
| Cue Health vs. CareMax | Cue Health vs. Premier | Cue Health vs. HealthStream | Cue Health vs. EUDA Health Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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