Correlation Between Procter Gamble and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Mainstay Growth 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 Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Mainstay Growth Etf, you can compare the effects of market volatilities on Procter Gamble and Mainstay Growth 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 Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Mainstay Growth.
Diversification Opportunities for Procter Gamble and Mainstay Growth
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Mainstay is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Procter Gamble i.e., Procter Gamble and Mainstay Growth go up and down completely randomly.
Pair Corralation between Procter Gamble and Mainstay Growth
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.75 times more return on investment than Mainstay Growth. However, Procter Gamble is 1.75 times more volatile than Mainstay Growth Etf. It trades about 0.19 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.19 per unit of risk. If you would invest 16,930 in Procter Gamble on August 28, 2024 and sell it today you would earn a total of 809.00 from holding Procter Gamble or generate 4.78% 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. Mainstay Growth Etf
Performance |
| Timeline |
| Procter Gamble |
| Mainstay Growth Etf |
Procter Gamble and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Mainstay Growth
The main advantage of trading using opposite Procter Gamble and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Mainstay Growth 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 Mainstay Growth will offset losses from the drop in Mainstay Growth'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 |
| Mainstay Growth vs. Siit Emerging Markets | Mainstay Growth vs. Rbc Bluebay Emerging | Mainstay Growth vs. Franklin Emerging Market | Mainstay Growth vs. Shelton Emerging Markets |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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