Correlation Between Intel and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both Intel and Procter Gamble 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 Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Procter Gamble, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Procter Gamble.
Diversification Opportunities for Intel and Procter Gamble
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Procter is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble 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 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 has no effect on the direction of Intel i.e., Intel and Procter Gamble go up and down completely randomly.
Pair Corralation between Intel and Procter Gamble
Given the investment horizon of 90 days Intel is expected to generate 2.85 times more return on investment than Procter Gamble. However, Intel is 2.85 times more volatile than Procter Gamble. It trades about 0.12 of its potential returns per unit of risk. Procter Gamble is currently generating about 0.06 per unit of risk. If you would invest 2,010 in Intel on September 3, 2024 and sell it today you would earn a total of 395.00 from holding Intel or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Procter Gamble
Performance |
| Timeline |
| Intel |
| Procter Gamble |
Intel and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Procter Gamble
The main advantage of trading using opposite Intel and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Procter Gamble vs. Highway Holdings Limited | Procter Gamble vs. QCR Holdings | Procter Gamble vs. Partner Communications | Procter Gamble vs. Acumen Pharmaceuticals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |