Correlation Between GlaxoSmithKline PLC and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and McEwen Mining 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 McEwen Mining 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 McEwen Mining, you can compare the effects of market volatilities on GlaxoSmithKline PLC and McEwen Mining 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 McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and McEwen Mining.
Diversification Opportunities for GlaxoSmithKline PLC and McEwen Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GlaxoSmithKline and McEwen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining 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 McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and McEwen Mining go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and McEwen Mining
If you would invest 14,548 in McEwen Mining on January 23, 2025 and sell it today you would earn a total of 0.00 from holding McEwen Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. McEwen Mining
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| McEwen Mining |
GlaxoSmithKline PLC and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and McEwen Mining
The main advantage of trading using opposite GlaxoSmithKline PLC and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining'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 |
| McEwen Mining vs. Lloyds Banking Group | McEwen Mining vs. Grupo Carso SAB | McEwen Mining vs. The Home Depot | McEwen Mining vs. Taiwan Semiconductor Manufacturing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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