Correlation Between Procter Gamble and Sharecare
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Sharecare 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 Sharecare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Sharecare, you can compare the effects of market volatilities on Procter Gamble and Sharecare 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 Sharecare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Sharecare.
Diversification Opportunities for Procter Gamble and Sharecare
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Procter and Sharecare is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare 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 Sharecare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharecare has no effect on the direction of Procter Gamble i.e., Procter Gamble and Sharecare go up and down completely randomly.
Pair Corralation between Procter Gamble and Sharecare
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 117.29 times less return on investment than Sharecare. But when comparing it to its historical volatility, Procter Gamble is 32.15 times less risky than Sharecare. It trades about 0.03 of its potential returns per unit of risk. Sharecare is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.90 in Sharecare on September 14, 2024 and sell it today you would earn a total of 6.70 from holding Sharecare or generate 352.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Procter Gamble vs. Sharecare
Performance |
| Timeline |
| Procter Gamble |
| Sharecare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and Sharecare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Sharecare
The main advantage of trading using opposite Procter Gamble and Sharecare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Sharecare 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 Sharecare will offset losses from the drop in Sharecare's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Estee Lauder Companies |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |