Correlation Between Procter Gamble and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Saat Aggressive 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 Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Saat Aggressive Strategy, you can compare the effects of market volatilities on Procter Gamble and Saat Aggressive 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 Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Saat Aggressive.
Diversification Opportunities for Procter Gamble and Saat Aggressive
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Saat is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy 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 Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Procter Gamble i.e., Procter Gamble and Saat Aggressive go up and down completely randomly.
Pair Corralation between Procter Gamble and Saat Aggressive
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.56 times more return on investment than Saat Aggressive. However, Procter Gamble is 1.56 times more volatile than Saat Aggressive Strategy. It trades about 0.07 of its potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.09 per unit of risk. If you would invest 14,110 in Procter Gamble on August 31, 2024 and sell it today you would earn a total of 3,816 from holding Procter Gamble or generate 27.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Procter Gamble vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Procter Gamble |
| Saat Aggressive Strategy |
Procter Gamble and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Saat Aggressive
The main advantage of trading using opposite Procter Gamble and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Saat Aggressive 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 Saat Aggressive will offset losses from the drop in Saat Aggressive's long position.| Procter Gamble vs. Aquagold International | Procter Gamble vs. Morningstar Unconstrained Allocation | Procter Gamble vs. Thrivent High Yield | Procter Gamble vs. Via Renewables |
| Saat Aggressive vs. HUMANA INC | Saat Aggressive vs. SCOR PK | Saat Aggressive vs. Aquagold International | Saat Aggressive vs. Thrivent High Yield |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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