Correlation Between Procter Gamble and Global X
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Global X 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 Procter Gamble and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Global X Artificial, you can compare the effects of market volatilities on Procter Gamble and Global X 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 Procter Gamble with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Global X.
Diversification Opportunities for Procter Gamble and Global X
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Global is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Global X Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Artificial and Procter Gamble 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 Procter Gamble are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Artificial has no effect on the direction of Procter Gamble i.e., Procter Gamble and Global X go up and down completely randomly.
Pair Corralation between Procter Gamble and Global X
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.04 times more return on investment than Global X. However, Procter Gamble is 1.04 times more volatile than Global X Artificial. It trades about 0.19 of its potential returns per unit of risk. Global X Artificial is currently generating about 0.16 per unit of risk. If you would invest 16,930 in Procter Gamble on August 28, 2024 and sell it today you would earn a total of 809.00 from holding Procter Gamble or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Global X Artificial
Performance |
| Timeline |
| Procter Gamble |
| Global X Artificial |
Procter Gamble and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Global X
The main advantage of trading using opposite Procter Gamble and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Estee Lauder Companies | Procter Gamble vs. ELF Beauty | Procter Gamble vs. Coty Inc |
| Global X vs. Invesco DWA Utilities | Global X vs. Invesco Dynamic Large | Global X vs. Invesco Dynamic Large | Global X vs. HUMANA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |