Correlation Analysis Between GW Pharmaceuticals and Allergan Plc

This module allows you to analyze existing cross correlation between GW Pharmaceuticals Plc and Allergan Plc. You can compare the effects of market volatilities on GW Pharmaceuticals and Allergan 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 GW Pharmaceuticals with a short position of Allergan Plc. See also your portfolio center. Please also check ongoing floating volatility patterns of GW Pharmaceuticals and Allergan Plc.
Horizon     30 Days    Login   to change
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Comparative Performance

GW Pharmaceuticals Plc  
00

Risk-Adjusted Performance

Over the last 30 days GW Pharmaceuticals Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2020. The prevalent disturbance may also be a sign of long-run up-swing for the entity stockholder.
Allergan Plc  
2525

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Allergan Plc are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days. Allthough quite conflicting forward indicators, Allergan Plc may actually be approaching a critical reversion point that can send shares even higher in January 2020.

GW Pharmaceuticals and Allergan Plc Volatility Contrast

 Predicted Return Density 
      Returns 

GW Pharmaceuticals Plc  vs.  Allergan Plc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, GW Pharmaceuticals Plc is expected to under-perform the Allergan Plc. In addition to that, GW Pharmaceuticals is 12.4 times more volatile than Allergan Plc. It trades about -0.05 of its total potential returns per unit of risk. Allergan Plc is currently generating about 0.37 per unit of volatility. If you would invest  16,635  in Allergan Plc on November 11, 2019 and sell it today you would earn a total of  2,029  from holding Allergan Plc or generate 12.2% return on investment over 30 days.

Pair Corralation between GW Pharmaceuticals and Allergan Plc

-0.67
Time Period3 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for GW Pharmaceuticals and Allergan Plc

GW Pharmaceuticals Plc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding GW Pharmaceuticals Plc and Allergan Plc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Allergan Plc and GW Pharmaceuticals 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 GW Pharmaceuticals Plc are associated (or correlated) with Allergan Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allergan Plc has no effect on the direction of GW Pharmaceuticals i.e. GW Pharmaceuticals and Allergan Plc go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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