Correlation Between Procter Gamble and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Accretion 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 Accretion 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on Procter Gamble and Accretion 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Accretion Acquisition.
Diversification Opportunities for Procter Gamble and Accretion Acquisition
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Accretion is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Procter Gamble i.e., Procter Gamble and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Procter Gamble and Accretion Acquisition
If you would invest 16,822 in Procter Gamble on August 26, 2024 and sell it today you would earn a total of 806.00 from holding Procter Gamble or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Procter Gamble vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Procter Gamble |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Accretion Acquisition
The main advantage of trading using opposite Procter Gamble and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Accretion 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 Accretion Acquisition will offset losses from the drop in Accretion 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 |
| Accretion Acquisition vs. Sonos Inc | Accretion Acquisition vs. BBB Foods | Accretion Acquisition vs. Tyson Foods | Accretion Acquisition vs. Emerson Radio |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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