Correlation Between GlaxoSmithKline PLC and Leggmason Partners
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Leggmason Partners 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 Leggmason Partners 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 Leggmason Partners Institutional, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Leggmason Partners 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 Leggmason Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Leggmason Partners.
Diversification Opportunities for GlaxoSmithKline PLC and Leggmason Partners
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GlaxoSmithKline and Leggmason is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Leggmason Partners Institution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leggmason Partners 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 Leggmason Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leggmason Partners has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Leggmason Partners go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Leggmason Partners
If you would invest 100.00 in Leggmason Partners Institutional on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Leggmason Partners Institutional or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Leggmason Partners Institution
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Leggmason Partners |
GlaxoSmithKline PLC and Leggmason Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Leggmason Partners
The main advantage of trading using opposite GlaxoSmithKline PLC and Leggmason Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Leggmason Partners 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 Leggmason Partners will offset losses from the drop in Leggmason Partners' 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 |
| Leggmason Partners vs. Goldman Sachs Mlp | Leggmason Partners vs. Europac Gold Fund | Leggmason Partners vs. Fidelity Advisor Gold | Leggmason Partners vs. Oppenheimer Gold Special |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |