Correlation Between Procter Gamble and Bank Qnb
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Bank Qnb 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 Bank Qnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Bank Qnb Indonesia, you can compare the effects of market volatilities on Procter Gamble and Bank Qnb 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 Bank Qnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Bank Qnb.
Diversification Opportunities for Procter Gamble and Bank Qnb
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and Bank is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Bank Qnb Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Qnb Indonesia 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 Bank Qnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Qnb Indonesia has no effect on the direction of Procter Gamble i.e., Procter Gamble and Bank Qnb go up and down completely randomly.
Pair Corralation between Procter Gamble and Bank Qnb
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.25 times more return on investment than Bank Qnb. However, Procter Gamble is 3.97 times less risky than Bank Qnb. It trades about 0.08 of its potential returns per unit of risk. Bank Qnb Indonesia is currently generating about -0.04 per unit of risk. If you would invest 16,958 in Procter Gamble on August 24, 2024 and sell it today you would earn a total of 317.00 from holding Procter Gamble or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Bank Qnb Indonesia
Performance |
| Timeline |
| Procter Gamble |
| Bank Qnb Indonesia |
Procter Gamble and Bank Qnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Bank Qnb
The main advantage of trading using opposite Procter Gamble and Bank Qnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Bank Qnb 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 Bank Qnb will offset losses from the drop in Bank Qnb's long position.| Procter Gamble vs. Honest Company | Procter Gamble vs. Hims Hers Health | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Colgate Palmolive |
| Bank Qnb vs. Bank Victoria International | Bank Qnb vs. Bank Mnc Internasional | Bank Qnb vs. Bank Bumi Arta | Bank Qnb vs. Bank Capital Indonesia |
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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