Correlation Between Aster DM and Procter Gamble
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By analyzing existing cross correlation between Aster DM Healthcare and Procter Gamble Health, you can compare the effects of market volatilities on Aster DM and Procter Gamble 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 Aster DM with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and Procter Gamble.
Diversification Opportunities for Aster DM and Procter Gamble
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aster and Procter is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare and Procter Gamble Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble Health and Aster DM 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 Aster DM Healthcare are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble Health has no effect on the direction of Aster DM i.e., Aster DM and Procter Gamble go up and down completely randomly.
Pair Corralation between Aster DM and Procter Gamble
Assuming the 90 days trading horizon Aster DM Healthcare is expected to generate 1.22 times more return on investment than Procter Gamble. However, Aster DM is 1.22 times more volatile than Procter Gamble Health. It trades about 0.25 of its potential returns per unit of risk. Procter Gamble Health is currently generating about 0.14 per unit of risk. If you would invest 43,830 in Aster DM Healthcare on September 13, 2024 and sell it today you would earn a total of 5,075 from holding Aster DM Healthcare or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aster DM Healthcare vs. Procter Gamble Health
Performance |
| Timeline |
| Aster DM Healthcare |
| Procter Gamble Health |
Aster DM and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and Procter Gamble
The main advantage of trading using opposite Aster DM and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| Aster DM vs. Reliance Industries Limited | Aster DM vs. Oil Natural Gas | Aster DM vs. ICICI Bank Limited | Aster DM vs. Bharti Airtel Limited |
| Procter Gamble vs. Kingfa Science Technology | Procter Gamble vs. Rico Auto Industries | Procter Gamble vs. GACM Technologies Limited | Procter Gamble vs. COSMO FIRST LIMITED |
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 Stocks Directory module to find actively traded stocks across global markets.
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