Correlation Between Procter Gamble and GCP Applied
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and GCP Applied 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 GCP Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and GCP Applied Technologies, you can compare the effects of market volatilities on Procter Gamble and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and GCP Applied.
Diversification Opportunities for Procter Gamble and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Procter and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of Procter Gamble i.e., Procter Gamble and GCP Applied go up and down completely randomly.
Pair Corralation between Procter Gamble and GCP Applied
If you would invest 14,468 in Procter Gamble on September 30, 2024 and sell it today you would earn a total of 2,485 from holding Procter Gamble or generate 17.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Procter Gamble vs. GCP Applied Technologies
Performance |
| Timeline |
| Procter Gamble |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and GCP Applied
The main advantage of trading using opposite Procter Gamble and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied'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 |
| GCP Applied vs. JBG SMITH Properties | GCP Applied vs. Huadi International Group | GCP Applied vs. KNOT Offshore Partners | GCP Applied vs. Live Ventures |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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