Correlation Between GlaxoSmithKline PLC and NIBC Holding
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and NIBC Holding 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 NIBC Holding 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 NIBC Holding NV, you can compare the effects of market volatilities on GlaxoSmithKline PLC and NIBC Holding 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 NIBC Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and NIBC Holding.
Diversification Opportunities for GlaxoSmithKline PLC and NIBC Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and NIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and NIBC Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIBC Holding NV 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 NIBC Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIBC Holding NV has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and NIBC Holding go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and NIBC Holding
If you would invest (100.00) in NIBC Holding NV on August 30, 2024 and sell it today you would earn a total of 100.00 from holding NIBC Holding NV or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. NIBC Holding NV
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| NIBC Holding NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GlaxoSmithKline PLC and NIBC Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and NIBC Holding
The main advantage of trading using opposite GlaxoSmithKline PLC and NIBC Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, NIBC Holding 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 NIBC Holding will offset losses from the drop in NIBC Holding'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 |
| NIBC Holding vs. SBM Offshore NV | NIBC Holding vs. AMG Advanced Metallurgical | NIBC Holding vs. Vastned Retail NV | NIBC Holding vs. Reinet Investments SCA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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