Correlation Between GlaxoSmithKline PLC and Nano X
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Nano X 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 Nano X 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 Nano X Imaging, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Nano X 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 Nano X. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Nano X.
Diversification Opportunities for GlaxoSmithKline PLC and Nano X
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GlaxoSmithKline and Nano is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Nano X Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano X Imaging 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 Nano X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano X Imaging has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Nano X go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Nano X
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Nano X. But the stock apears to be less risky and, when comparing its historical volatility, GlaxoSmithKline PLC ADR is 4.65 times less risky than Nano X. The stock trades about -0.03 of its potential returns per unit of risk. The Nano X Imaging is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Nano X Imaging on August 28, 2024 and sell it today you would earn a total of 104.00 from holding Nano X Imaging or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Nano X Imaging
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Nano X Imaging |
GlaxoSmithKline PLC and Nano X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Nano X
The main advantage of trading using opposite GlaxoSmithKline PLC and Nano X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Nano X 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 Nano X will offset losses from the drop in Nano X'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 |
| Nano X vs. Abbott Laboratories | Nano X vs. Stryker | Nano X vs. Edwards Lifesciences Corp | Nano X vs. Boston Scientific Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |