Correlation Between Procter Gamble and Ultra Nasdaq-100
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Ultra Nasdaq-100 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 Ultra Nasdaq-100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Ultra Nasdaq 100 Profunds, you can compare the effects of market volatilities on Procter Gamble and Ultra Nasdaq-100 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 Ultra Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Ultra Nasdaq-100.
Diversification Opportunities for Procter Gamble and Ultra Nasdaq-100
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and Ultra is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Ultra Nasdaq 100 Profunds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Nasdaq 100 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 Ultra Nasdaq-100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Nasdaq 100 has no effect on the direction of Procter Gamble i.e., Procter Gamble and Ultra Nasdaq-100 go up and down completely randomly.
Pair Corralation between Procter Gamble and Ultra Nasdaq-100
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 3.26 times less return on investment than Ultra Nasdaq-100. But when comparing it to its historical volatility, Procter Gamble is 2.08 times less risky than Ultra Nasdaq-100. It trades about 0.08 of its potential returns per unit of risk. Ultra Nasdaq 100 Profunds is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,626 in Ultra Nasdaq 100 Profunds on August 24, 2024 and sell it today you would earn a total of 645.00 from holding Ultra Nasdaq 100 Profunds or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Ultra Nasdaq 100 Profunds
Performance |
| Timeline |
| Procter Gamble |
| Ultra Nasdaq 100 |
Procter Gamble and Ultra Nasdaq-100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Ultra Nasdaq-100
The main advantage of trading using opposite Procter Gamble and Ultra Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Ultra Nasdaq-100 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 Ultra Nasdaq-100 will offset losses from the drop in Ultra Nasdaq-100's long position.| Procter Gamble vs. Eshallgo Class A | Procter Gamble vs. Amtech Systems | Procter Gamble vs. Gold Fields Ltd | Procter Gamble vs. Aegean Airlines SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |