Correlation Between Procter Gamble and Stonebridge Acquisition
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Stonebridge Acquisition 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 Stonebridge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Stonebridge Acquisition Corp, you can compare the effects of market volatilities on Procter Gamble and Stonebridge Acquisition 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 Stonebridge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Stonebridge Acquisition.
Diversification Opportunities for Procter Gamble and Stonebridge Acquisition
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Stonebridge is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Stonebridge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stonebridge Acquisition 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 Stonebridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stonebridge Acquisition has no effect on the direction of Procter Gamble i.e., Procter Gamble and Stonebridge Acquisition go up and down completely randomly.
Pair Corralation between Procter Gamble and Stonebridge Acquisition
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 | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Procter Gamble vs. Stonebridge Acquisition Corp
Performance |
| Timeline |
| Procter Gamble |
| Stonebridge Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and Stonebridge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Stonebridge Acquisition
The main advantage of trading using opposite Procter Gamble and Stonebridge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Stonebridge Acquisition 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 Stonebridge Acquisition will offset losses from the drop in Stonebridge Acquisition'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |