Correlation Between GlaxoSmithKline PLC and GW Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both GlaxoSmithKline PLC and GW Pharmaceuticals 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 GW Pharmaceuticals 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 GW Pharmaceuticals Plc, you can compare the effects of market volatilities on GlaxoSmithKline PLC and GW Pharmaceuticals 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 GW Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlaxoSmithKline PLC and GW Pharmaceuticals.
Diversification Opportunities for GlaxoSmithKline PLC and GW Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GlaxoSmithKline and GWPH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GlaxoSmithKline PLC ADR and GW Pharmaceuticals Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GW Pharmaceuticals Plc 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 GW Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GW Pharmaceuticals Plc has no effect on the direction of GlaxoSmithKline PLC i.e., GlaxoSmithKline PLC and GW Pharmaceuticals go up and down completely randomly.
Pair Corralation between GlaxoSmithKline PLC and GW Pharmaceuticals
If you would invest (100.00) in GW Pharmaceuticals Plc on January 25, 2024 and sell it today you would earn a total of 100.00 from holding GW Pharmaceuticals Plc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
GlaxoSmithKline PLC ADR vs. GW Pharmaceuticals Plc
Performance |
Timeline |
GlaxoSmithKline PLC ADR |
GW Pharmaceuticals Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GlaxoSmithKline PLC and GW Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GlaxoSmithKline PLC and GW Pharmaceuticals
The main advantage of trading using opposite GlaxoSmithKline PLC and GW Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlaxoSmithKline PLC position performs unexpectedly, GW Pharmaceuticals 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 GW Pharmaceuticals will offset losses from the drop in GW Pharmaceuticals' 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 |
GW Pharmaceuticals vs. Agiliti | GW Pharmaceuticals vs. US Silica Holdings | GW Pharmaceuticals vs. Eldorado Gold Corp | GW Pharmaceuticals vs. Summit Materials |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |