Correlation Between GlaxoSmithKline PLC and 26442CAZ7

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and 26442CAZ7 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 26442CAZ7 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 DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on GlaxoSmithKline PLC and 26442CAZ7 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 26442CAZ7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and 26442CAZ7.

Diversification Opportunities for GlaxoSmithKline PLC and 26442CAZ7

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between GlaxoSmithKline and 26442CAZ7 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS 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 26442CAZ7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and 26442CAZ7 go up and down completely randomly.

Pair Corralation between GlaxoSmithKline PLC and 26442CAZ7

Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the 26442CAZ7. In addition to that, GlaxoSmithKline PLC is 1.05 times more volatile than DUKE ENERGY CAROLINAS. It trades about -0.23 of its total potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about 0.03 per unit of volatility. If you would invest  6,729  in DUKE ENERGY CAROLINAS on August 31, 2024 and sell it today you would earn a total of  114.00  from holding DUKE ENERGY CAROLINAS or generate 1.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy88.89%
ValuesDaily Returns

GlaxoSmithKline PLC ADR  vs.  DUKE ENERGY CAROLINAS

 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.
DUKE ENERGY CAROLINAS 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in DUKE ENERGY CAROLINAS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442CAZ7 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

GlaxoSmithKline PLC and 26442CAZ7 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GlaxoSmithKline PLC and 26442CAZ7

The main advantage of trading using opposite GlaxoSmithKline PLC and 26442CAZ7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, 26442CAZ7 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 26442CAZ7 will offset losses from the drop in 26442CAZ7'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
The idea behind GlaxoSmithKline PLC ADR and DUKE ENERGY CAROLINAS 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.
26442CAZ7 vs. Corporacion America Airports
26442CAZ7 vs. Life Time Group
26442CAZ7 vs. United Parks Resorts
26442CAZ7 vs. Willamette Valley Vineyards
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings


 
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