Correlation Between Procter Gamble and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Logan Ridge 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 Logan Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Logan Ridge Finance, you can compare the effects of market volatilities on Procter Gamble and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Logan Ridge.
Diversification Opportunities for Procter Gamble and Logan Ridge
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Logan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Procter Gamble i.e., Procter Gamble and Logan Ridge go up and down completely randomly.
Pair Corralation between Procter Gamble and Logan Ridge
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.19 times less return on investment than Logan Ridge. But when comparing it to its historical volatility, Procter Gamble is 1.06 times less risky than Logan Ridge. It trades about 0.17 of its potential returns per unit of risk. Logan Ridge Finance is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,376 in Logan Ridge Finance on August 27, 2024 and sell it today you would earn a total of 117.00 from holding Logan Ridge Finance or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Logan Ridge Finance
Performance |
| Timeline |
| Procter Gamble |
| Logan Ridge Finance |
Procter Gamble and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Logan Ridge
The main advantage of trading using opposite Procter Gamble and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge'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 |
| Logan Ridge vs. PowerUp Acquisition Corp | Logan Ridge vs. Aurora Innovation | Logan Ridge vs. HUMANA INC | Logan Ridge vs. Aquagold International |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |