Correlation Between Intel and GLAXOSMITHKLINE

Can any of the company-specific risk be diversified away by investing in both Intel and GLAXOSMITHKLINE 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 Intel and GLAXOSMITHKLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and GLAXOSMITHKLINE CAP INC, you can compare the effects of market volatilities on Intel and GLAXOSMITHKLINE 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 Intel with a short position of GLAXOSMITHKLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and GLAXOSMITHKLINE.

Diversification Opportunities for Intel and GLAXOSMITHKLINE

0.0

Correlation Coefficient

Intel  GLAXOSMITHKLINE

Pay attention - limited upside

The 3 months correlation between Intel and GLAXOSMITHKLINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel and GLAXOSMITHKLINE CAP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLAXOSMITHKLINE CAP INC and Intel 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 Intel are associated (or correlated) with GLAXOSMITHKLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLAXOSMITHKLINE CAP INC has no effect on the direction of Intel i.e., Intel and GLAXOSMITHKLINE go up and down completely randomly.

Pair Corralation between Intel and GLAXOSMITHKLINE

If you would invest  2,010  in Intel on September 3, 2024 and sell it today you would earn a total of  383.00  from holding Intel or generate 19.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intel  vs.  GLAXOSMITHKLINE CAP INC

Intel

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

GLAXOSMITHKLINE CAP INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GLAXOSMITHKLINE CAP INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GLAXOSMITHKLINE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and GLAXOSMITHKLINE

The main advantage of trading using opposite Intel and GLAXOSMITHKLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, GLAXOSMITHKLINE 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 will offset losses from the drop in GLAXOSMITHKLINE's long position.

The idea behind Intel and GLAXOSMITHKLINE CAP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.