Correlation Between Procter Gamble and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Amplify Thematic 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 Amplify Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Amplify Thematic All Stars, you can compare the effects of market volatilities on Procter Gamble and Amplify Thematic 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 Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Amplify Thematic.
Diversification Opportunities for Procter Gamble and Amplify Thematic
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Amplify is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All 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 Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of Procter Gamble i.e., Procter Gamble and Amplify Thematic go up and down completely randomly.
Pair Corralation between Procter Gamble and Amplify Thematic
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.8 times more return on investment than Amplify Thematic. However, Procter Gamble is 1.25 times less risky than Amplify Thematic. It trades about 0.29 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.19 per unit of risk. If you would invest 16,717 in Procter Gamble on August 30, 2024 and sell it today you would earn a total of 1,219 from holding Procter Gamble or generate 7.29% 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. Amplify Thematic All Stars
Performance |
| Timeline |
| Procter Gamble |
| Amplify Thematic All |
Procter Gamble and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Amplify Thematic
The main advantage of trading using opposite Procter Gamble and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Amplify Thematic 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 Amplify Thematic will offset losses from the drop in Amplify Thematic's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Church Dwight | Procter Gamble vs. Kimberly Clark |
| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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