Correlation Between Vaccinex and GlaxoSmithKline PLC
Can any of the company-specific risk be diversified away by investing in both Vaccinex and GlaxoSmithKline PLC 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 Vaccinex and GlaxoSmithKline PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and GlaxoSmithKline PLC ADR, you can compare the effects of market volatilities on Vaccinex and GlaxoSmithKline PLC 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 Vaccinex with a short position of GlaxoSmithKline PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and GlaxoSmithKline PLC.
Diversification Opportunities for Vaccinex and GlaxoSmithKline PLC
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vaccinex and GlaxoSmithKline is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and GlaxoSmithKline PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlaxoSmithKline PLC ADR and Vaccinex 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 Vaccinex are associated (or correlated) with GlaxoSmithKline PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlaxoSmithKline PLC ADR has no effect on the direction of Vaccinex i.e., Vaccinex and GlaxoSmithKline PLC go up and down completely randomly.
Pair Corralation between Vaccinex and GlaxoSmithKline PLC
Given the investment horizon of 90 days Vaccinex is expected to generate 5.52 times more return on investment than GlaxoSmithKline PLC. However, Vaccinex is 5.52 times more volatile than GlaxoSmithKline PLC ADR. It trades about 0.02 of its potential returns per unit of risk. GlaxoSmithKline PLC ADR is currently generating about -0.12 per unit of risk. If you would invest 501.00 in Vaccinex on August 24, 2024 and sell it today you would lose (141.00) from holding Vaccinex or give up 28.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaccinex vs. GlaxoSmithKline PLC ADR
Performance |
| Timeline |
| Vaccinex |
| GlaxoSmithKline PLC ADR |
Vaccinex and GlaxoSmithKline PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and GlaxoSmithKline PLC
The main advantage of trading using opposite Vaccinex and GlaxoSmithKline PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex position performs unexpectedly, GlaxoSmithKline PLC 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 GlaxoSmithKline PLC will offset losses from the drop in GlaxoSmithKline PLC's long position.| Vaccinex vs. ZyVersa Therapeutics | Vaccinex vs. Sonnet Biotherapeutics Holdings | Vaccinex vs. Zura Bio Limited | Vaccinex vs. Phio Pharmaceuticals Corp |
| GlaxoSmithKline PLC vs. Novartis AG ADR | GlaxoSmithKline PLC vs. AstraZeneca PLC ADR | GlaxoSmithKline PLC vs. Roche Holding Ltd | GlaxoSmithKline PLC vs. Bristol Myers Squibb |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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