Correlation Between Procter Gamble and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and SPDR Blackstone 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 SPDR Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and SPDR Blackstone Senior, you can compare the effects of market volatilities on Procter Gamble and SPDR Blackstone 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 SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and SPDR Blackstone.
Diversification Opportunities for Procter Gamble and SPDR Blackstone
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and SPDR is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior 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 SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of Procter Gamble i.e., Procter Gamble and SPDR Blackstone go up and down completely randomly.
Pair Corralation between Procter Gamble and SPDR Blackstone
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 19.9 times more return on investment than SPDR Blackstone. However, Procter Gamble is 19.9 times more volatile than SPDR Blackstone Senior. It trades about 0.11 of its potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.03 per unit of risk. If you would invest 16,619 in Procter Gamble on November 29, 2024 and sell it today you would earn a total of 511.00 from holding Procter Gamble or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. SPDR Blackstone Senior
Performance |
| Timeline |
| Procter Gamble |
| SPDR Blackstone Senior |
Procter Gamble and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and SPDR Blackstone
The main advantage of trading using opposite Procter Gamble and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, SPDR Blackstone 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 SPDR Blackstone will offset losses from the drop in SPDR Blackstone's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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