Correlation Between Procter Gamble and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Innovator ETFs 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 Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Innovator ETFs Trust, you can compare the effects of market volatilities on Procter Gamble and Innovator ETFs 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 Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Innovator ETFs.
Diversification Opportunities for Procter Gamble and Innovator ETFs
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Innovator is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust 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 Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of Procter Gamble i.e., Procter Gamble and Innovator ETFs go up and down completely randomly.
Pair Corralation between Procter Gamble and Innovator ETFs
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.37 times more return on investment than Innovator ETFs. However, Procter Gamble is 1.37 times more volatile than Innovator ETFs Trust. It trades about 0.07 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.07 per unit of risk. If you would invest 16,504 in Procter Gamble on September 2, 2024 and sell it today you would earn a total of 1,422 from holding Procter Gamble or generate 8.62% 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. Innovator ETFs Trust
Performance |
| Timeline |
| Procter Gamble |
| Innovator ETFs Trust |
Procter Gamble and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Innovator ETFs
The main advantage of trading using opposite Procter Gamble and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Estee Lauder Companies |
| Innovator ETFs vs. Innovator ETFs Trust | Innovator ETFs vs. Innovator MSCI Emerging | Innovator ETFs vs. Innovator Russell 2000 | Innovator ETFs vs. Innovator MSCI Emerging |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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