Correlation Between Procter Gamble and Amplify Lithium
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Amplify Lithium 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 Amplify Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Amplify Lithium Battery, you can compare the effects of market volatilities on Procter Gamble and Amplify Lithium 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 Amplify Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Amplify Lithium.
Diversification Opportunities for Procter Gamble and Amplify Lithium
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Amplify is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Amplify Lithium Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Lithium Battery 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 Amplify Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Lithium Battery has no effect on the direction of Procter Gamble i.e., Procter Gamble and Amplify Lithium go up and down completely randomly.
Pair Corralation between Procter Gamble and Amplify Lithium
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.58 times more return on investment than Amplify Lithium. However, Procter Gamble is 1.73 times less risky than Amplify Lithium. It trades about 0.1 of its potential returns per unit of risk. Amplify Lithium Battery is currently generating about -0.01 per unit of risk. If you would invest 14,508 in Procter Gamble on September 3, 2024 and sell it today you would earn a total of 3,418 from holding Procter Gamble or generate 23.56% 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. Amplify Lithium Battery
Performance |
| Timeline |
| Procter Gamble |
| Amplify Lithium Battery |
Procter Gamble and Amplify Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Amplify Lithium
The main advantage of trading using opposite Procter Gamble and Amplify Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Amplify Lithium 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 Amplify Lithium will offset losses from the drop in Amplify Lithium's long position.| Procter Gamble vs. Highway Holdings Limited | Procter Gamble vs. QCR Holdings | Procter Gamble vs. Partner Communications | Procter Gamble vs. Acumen Pharmaceuticals |
| Amplify Lithium vs. KraneShares Electric Vehicles | Amplify Lithium vs. iShares Self Driving EV | Amplify Lithium vs. SPDR SP Kensho | Amplify Lithium vs. Global X Lithium |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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