Correlation Between Procter Gamble and Infinity Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Infinity Pharmaceuticals, you can compare the effects of market volatilities on Procter Gamble and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Infinity Pharmaceuticals.
Diversification Opportunities for Procter Gamble and Infinity Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Procter and Infinity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Infinity Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Pharmaceuticals has no effect on the direction of Procter Gamble i.e., Procter Gamble and Infinity Pharmaceuticals go up and down completely randomly.
Pair Corralation between Procter Gamble and Infinity Pharmaceuticals
If you would invest 17,444 in Procter Gamble on September 5, 2024 and sell it today you would earn a total of 67.00 from holding Procter Gamble or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Infinity Pharmaceuticals
Performance |
| Timeline |
| Procter Gamble |
| Infinity Pharmaceuticals |
Procter Gamble and Infinity Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Infinity Pharmaceuticals
The main advantage of trading using opposite Procter Gamble and Infinity Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Infinity Pharmaceuticals 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 Infinity Pharmaceuticals will offset losses from the drop in Infinity Pharmaceuticals' long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Estee Lauder Companies |
| Infinity Pharmaceuticals vs. Lincoln Electric Holdings | Infinity Pharmaceuticals vs. Snap On | Infinity Pharmaceuticals vs. Ziff Davis | Infinity Pharmaceuticals vs. Procter Gamble |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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