Correlation Between GlaxoSmithKline PLC and Surge Battery
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Surge Battery 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 Surge Battery 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 Surge Battery Metals, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Surge Battery 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 Surge Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Surge Battery.
Diversification Opportunities for GlaxoSmithKline PLC and Surge Battery
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GlaxoSmithKline and Surge is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Surge Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Battery Metals 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 Surge Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Battery Metals has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Surge Battery go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Surge Battery
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to generate 0.31 times more return on investment than Surge Battery. However, GlaxoSmithKline PLC ADR is 3.23 times less risky than Surge Battery. It trades about -0.31 of its potential returns per unit of risk. Surge Battery Metals is currently generating about -0.29 per unit of risk. If you would invest 3,745 in GlaxoSmithKline PLC ADR on August 29, 2024 and sell it today you would lose (343.00) from holding GlaxoSmithKline PLC ADR or give up 9.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Surge Battery Metals
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Surge Battery Metals |
GlaxoSmithKline PLC and Surge Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Surge Battery
The main advantage of trading using opposite GlaxoSmithKline PLC and Surge Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Surge Battery 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 Surge Battery will offset losses from the drop in Surge Battery'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 |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |