Correlation Between GlaxoSmithKline PLC and Voya Solution
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and Voya Solution 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 Voya Solution 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 Voya Solution 2060, you can compare the effects of market volatilities on GlaxoSmithKline PLC and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and Voya Solution.
Diversification Opportunities for GlaxoSmithKline PLC and Voya Solution
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and Voya is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and Voya Solution 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2060 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2060 has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and Voya Solution go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and Voya Solution
Considering the 90-day investment horizon GlaxoSmithKline PLC ADR is expected to under-perform the Voya Solution. In addition to that, GlaxoSmithKline PLC is 1.95 times more volatile than Voya Solution 2060. It trades about 0.0 of its total potential returns per unit of risk. Voya Solution 2060 is currently generating about 0.12 per unit of volatility. If you would invest 1,002 in Voya Solution 2060 on August 29, 2024 and sell it today you would earn a total of 229.00 from holding Voya Solution 2060 or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. Voya Solution 2060
Performance |
| Timeline |
| GlaxoSmithKline PLC ADR |
| Voya Solution 2060 |
GlaxoSmithKline PLC and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlaxoSmithKline PLC and Voya Solution
The main advantage of trading using opposite GlaxoSmithKline PLC and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution'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 |
| Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Limited Maturity |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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