Correlation Between Procter Gamble and CHK Old
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and CHK Old 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 CHK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and CHK Old, you can compare the effects of market volatilities on Procter Gamble and CHK Old 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 CHK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and CHK Old.
Diversification Opportunities for Procter Gamble and CHK Old
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Procter and CHK is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and CHK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHK Old 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 CHK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHK Old has no effect on the direction of Procter Gamble i.e., Procter Gamble and CHK Old go up and down completely randomly.
Pair Corralation between Procter Gamble and CHK Old
If you would invest 16,497 in Procter Gamble on November 3, 2024 and sell it today you would earn a total of 102.00 from holding Procter Gamble or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Procter Gamble vs. CHK Old
Performance |
| Timeline |
| Procter Gamble |
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and CHK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and CHK Old
The main advantage of trading using opposite Procter Gamble and CHK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, CHK Old 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 CHK Old will offset losses from the drop in CHK Old's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock Resources |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |