Correlation Between GlaxoSmithKline PLC and Nuveen Symphony
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Nuveen Symphony 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 Nuveen Symphony 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 Nuveen Symphony Floating, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Nuveen Symphony 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 Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Nuveen Symphony.
Diversification Opportunities for GlaxoSmithKline PLC and Nuveen Symphony
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Nuveen is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Nuveen Symphony Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Floating 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 Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Floating has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Nuveen Symphony go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Nuveen Symphony
Considering the 90-day investment horizon GlaxoSmithKline PLC is expected to generate 2.45 times less return on investment than Nuveen Symphony. In addition to that, GlaxoSmithKline PLC is 7.68 times more volatile than Nuveen Symphony Floating. It trades about 0.01 of its total potential returns per unit of risk. Nuveen Symphony Floating is currently generating about 0.21 per unit of volatility. If you would invest 1,534 in Nuveen Symphony Floating on August 30, 2024 and sell it today you would earn a total of 289.00 from holding Nuveen Symphony Floating or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Nuveen Symphony Floating
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Nuveen Symphony Floating |
GlaxoSmithKline PLC and Nuveen Symphony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Nuveen Symphony
The main advantage of trading using opposite GlaxoSmithKline PLC and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Nuveen Symphony 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 Nuveen Symphony will offset losses from the drop in Nuveen Symphony'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 |
| Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |