Correlation Between Equillium and GlaxoSmithKline PLC
Can any of the company-specific risk be diversified away by investing in both Equillium 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 Equillium and GlaxoSmithKline PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and GlaxoSmithKline PLC ADR, you can compare the effects of market volatilities on Equillium 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 Equillium with a short position of GlaxoSmithKline PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and GlaxoSmithKline PLC.
Diversification Opportunities for Equillium and GlaxoSmithKline PLC
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Equillium and GlaxoSmithKline is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Equillium 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 Equillium 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 Equillium 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 Equillium i.e., Equillium and GlaxoSmithKline PLC go up and down completely randomly.
Pair Corralation between Equillium and GlaxoSmithKline PLC
Allowing for the 90-day total investment horizon Equillium is expected to under-perform the GlaxoSmithKline PLC. In addition to that, Equillium is 4.79 times more volatile than GlaxoSmithKline PLC ADR. It trades about -0.3 of its total potential returns per unit of risk. GlaxoSmithKline PLC ADR is currently generating about -0.1 per unit of volatility. If you would invest 4,242 in GlaxoSmithKline PLC ADR on February 1, 2024 and sell it today you would lose (98.00) from holding GlaxoSmithKline PLC ADR or give up 2.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Equillium vs. GlaxoSmithKline PLC ADR
Performance |
Timeline |
Equillium |
GlaxoSmithKline PLC ADR |
Equillium and GlaxoSmithKline PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equillium and GlaxoSmithKline PLC
The main advantage of trading using opposite Equillium and GlaxoSmithKline PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium 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.Equillium vs. Lyra TherapeuticsInc | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. SAB Biotherapeutics |
GlaxoSmithKline PLC vs. Amgen Inc | GlaxoSmithKline PLC vs. Fidelity Freedom Blend | GlaxoSmithKline PLC vs. Income Fund Of | GlaxoSmithKline PLC vs. HP Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |