Correlation Between Procter Gamble and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and ANTA Sports 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 ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and ANTA Sports Products, you can compare the effects of market volatilities on Procter Gamble and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and ANTA Sports.
Diversification Opportunities for Procter Gamble and ANTA Sports
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and ANTA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Procter Gamble i.e., Procter Gamble and ANTA Sports go up and down completely randomly.
Pair Corralation between Procter Gamble and ANTA Sports
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.25 times more return on investment than ANTA Sports. However, Procter Gamble is 4.01 times less risky than ANTA Sports. It trades about 0.06 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.01 per unit of risk. If you would invest 16,119 in Procter Gamble on August 24, 2024 and sell it today you would earn a total of 1,156 from holding Procter Gamble or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Procter Gamble vs. ANTA Sports Products
Performance |
| Timeline |
| Procter Gamble |
| ANTA Sports Products |
Procter Gamble and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and ANTA Sports
The main advantage of trading using opposite Procter Gamble and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Procter Gamble vs. Honest Company | Procter Gamble vs. Hims Hers Health | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Colgate Palmolive |
| ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Li Ning Company | ANTA Sports vs. Li Ning Co | ANTA Sports vs. Anhui Conch Cement |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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