Correlation Between GlaxoSmithKline PLC and Seritage Growth
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Seritage Growth 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 Seritage Growth 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 Seritage Growth Properties, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Seritage Growth 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 Seritage Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Seritage Growth.
Diversification Opportunities for GlaxoSmithKline PLC and Seritage Growth
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GlaxoSmithKline and Seritage is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Seritage Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seritage Growth Prop 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 Seritage Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seritage Growth Prop has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Seritage Growth go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Seritage Growth
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to generate 0.47 times more return on investment than Seritage Growth. However, GlaxoSmithKline PLC ADR is 2.11 times less risky than Seritage Growth. It trades about 0.01 of its potential returns per unit of risk. Seritage Growth Properties is currently generating about -0.06 per unit of risk. If you would invest 3,251 in GlaxoSmithKline PLC ADR on August 24, 2024 and sell it today you would earn a total of 119.00 from holding GlaxoSmithKline PLC ADR or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Seritage Growth Properties
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Seritage Growth Prop |
GlaxoSmithKline PLC and Seritage Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Seritage Growth
The main advantage of trading using opposite GlaxoSmithKline PLC and Seritage Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Seritage Growth 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 Seritage Growth will offset losses from the drop in Seritage Growth'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 |
| Seritage Growth vs. Site Centers Corp | Seritage Growth vs. Saul Centers | Seritage Growth vs. Acadia Realty Trust | Seritage Growth vs. Kite Realty Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |