Correlation Between GlaxoSmithKline PLC and Prospect Logistics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Prospect Logistics 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 Prospect Logistics 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 Prospect Logistics and, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Prospect Logistics 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 Prospect Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Prospect Logistics.

Diversification Opportunities for GlaxoSmithKline PLC and Prospect Logistics

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GlaxoSmithKline and Prospect is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Prospect Logistics and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospect Logistics and 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 Prospect Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospect Logistics and has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Prospect Logistics go up and down completely randomly.

Pair Corralation between GlaxoSmithKline PLC and Prospect Logistics

Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Prospect Logistics. In addition to that, GlaxoSmithKline PLC is 1.83 times more volatile than Prospect Logistics and. It trades about -0.23 of its total potential returns per unit of risk. Prospect Logistics and is currently generating about 0.13 per unit of volatility. If you would invest  838.00  in Prospect Logistics and on September 1, 2024 and sell it today you would earn a total of  17.00  from holding Prospect Logistics and or generate 2.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy91.3%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  Prospect Logistics and

 Performance 
       Timeline  
GlaxoSmithKline PLC ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GlaxoSmithKline PLC ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Prospect Logistics and 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Prospect Logistics and are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Prospect Logistics may actually be approaching a critical reversion point that can send shares even higher in December 2024.

GlaxoSmithKline PLC and Prospect Logistics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and Prospect Logistics

The main advantage of trading using opposite GlaxoSmithKline PLC and Prospect Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Prospect Logistics 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 Prospect Logistics will offset losses from the drop in Prospect Logistics' 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
The idea behind GlaxoSmithKline PLC ADR and Prospect Logistics and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Prospect Logistics vs. LH Shopping Centers
Prospect Logistics vs. HEMARAJ INDUSTRIAL PROPERTY
Prospect Logistics vs. Land and Houses
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Fundamental Analysis
View fundamental data based on most recent published financial statements
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Global Correlations
Find global opportunities by holding instruments from different markets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY