Correlation Between Procter Gamble and PerkinElmer
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and PerkinElmer 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 PerkinElmer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and PerkinElmer, you can compare the effects of market volatilities on Procter Gamble and PerkinElmer 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 PerkinElmer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and PerkinElmer.
Diversification Opportunities for Procter Gamble and PerkinElmer
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and PerkinElmer is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and PerkinElmer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PerkinElmer 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 PerkinElmer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PerkinElmer has no effect on the direction of Procter Gamble i.e., Procter Gamble and PerkinElmer go up and down completely randomly.
Pair Corralation between Procter Gamble and PerkinElmer
If you would invest 17,350 in Procter Gamble on September 2, 2024 and sell it today you would earn a total of 576.00 from holding Procter Gamble or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Procter Gamble vs. PerkinElmer
Performance |
| Timeline |
| Procter Gamble |
| PerkinElmer |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and PerkinElmer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and PerkinElmer
The main advantage of trading using opposite Procter Gamble and PerkinElmer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, PerkinElmer 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 PerkinElmer will offset losses from the drop in PerkinElmer's long position.| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Estee Lauder Companies |
| PerkinElmer vs. Mettler Toledo International | PerkinElmer vs. Waters | PerkinElmer vs. Sotera Health Co | PerkinElmer vs. Charles River Laboratories |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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