Correlation Between Procter Gamble and AST SpaceMobile
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and AST SpaceMobile 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 AST SpaceMobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and AST SpaceMobile, you can compare the effects of market volatilities on Procter Gamble and AST SpaceMobile 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 AST SpaceMobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and AST SpaceMobile.
Diversification Opportunities for Procter Gamble and AST SpaceMobile
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and AST is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and AST SpaceMobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST SpaceMobile 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 AST SpaceMobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST SpaceMobile has no effect on the direction of Procter Gamble i.e., Procter Gamble and AST SpaceMobile go up and down completely randomly.
Pair Corralation between Procter Gamble and AST SpaceMobile
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 21.34 times less return on investment than AST SpaceMobile. But when comparing it to its historical volatility, Procter Gamble is 16.46 times less risky than AST SpaceMobile. It trades about 0.07 of its potential returns per unit of risk. AST SpaceMobile is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 175.00 in AST SpaceMobile on August 31, 2024 and sell it today you would earn a total of 1,174 from holding AST SpaceMobile or generate 670.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.24% |
| Values | Daily Returns |
Procter Gamble vs. AST SpaceMobile
Performance |
| Timeline |
| Procter Gamble |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and AST SpaceMobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and AST SpaceMobile
The main advantage of trading using opposite Procter Gamble and AST SpaceMobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, AST SpaceMobile 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 AST SpaceMobile will offset losses from the drop in AST SpaceMobile's long position.| Procter Gamble vs. Aquagold International | Procter Gamble vs. Morningstar Unconstrained Allocation | Procter Gamble vs. Thrivent High Yield | Procter Gamble vs. Via Renewables |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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