Correlation Between Procter Gamble and Sono Group
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Sono Group 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 Sono Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Sono Group NV, you can compare the effects of market volatilities on Procter Gamble and Sono Group 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 Sono Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Sono Group.
Diversification Opportunities for Procter Gamble and Sono Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Sono is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Sono Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sono Group NV 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 Sono Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sono Group NV has no effect on the direction of Procter Gamble i.e., Procter Gamble and Sono Group go up and down completely randomly.
Pair Corralation between Procter Gamble and Sono Group
If you would invest 16,271 in Procter Gamble on August 31, 2024 and sell it today you would earn a total of 1,655 from holding Procter Gamble or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Procter Gamble vs. Sono Group NV
Performance |
| Timeline |
| Procter Gamble |
| Sono Group NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and Sono Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Sono Group
The main advantage of trading using opposite Procter Gamble and Sono Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Sono Group 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 Sono Group will offset losses from the drop in Sono Group'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 |
| Sono Group vs. Mullen Automotive | Sono Group vs. Canoo Inc | Sono Group vs. Hyzon Motors | Sono Group vs. Faraday Future Intelligent |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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