Correlation Between Procter Gamble and PGIM ETF
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and PGIM ETF 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 PGIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and PGIM ETF Trust, you can compare the effects of market volatilities on Procter Gamble and PGIM ETF 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 PGIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and PGIM ETF.
Diversification Opportunities for Procter Gamble and PGIM ETF
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and PGIM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and PGIM ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM ETF Trust 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 PGIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM ETF Trust has no effect on the direction of Procter Gamble i.e., Procter Gamble and PGIM ETF go up and down completely randomly.
Pair Corralation between Procter Gamble and PGIM ETF
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.82 times more return on investment than PGIM ETF. However, Procter Gamble is 1.21 times less risky than PGIM ETF. It trades about 0.07 of its potential returns per unit of risk. PGIM ETF Trust is currently generating about 0.03 per unit of risk. If you would invest 16,119 in Procter Gamble on August 26, 2024 and sell it today you would earn a total of 1,509 from holding Procter Gamble or generate 9.36% 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. PGIM ETF Trust
Performance |
| Timeline |
| Procter Gamble |
| PGIM ETF Trust |
Procter Gamble and PGIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and PGIM ETF
The main advantage of trading using opposite Procter Gamble and PGIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, PGIM ETF 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 PGIM ETF will offset losses from the drop in PGIM ETF'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 |
| PGIM ETF vs. iShares Dividend and | PGIM ETF vs. Martin Currie Sustainable | PGIM ETF vs. VictoryShares THB Mid | PGIM ETF vs. Mast Global Battery |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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