Correlation Between Procter Gamble and Ardagh
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By analyzing existing cross correlation between Procter Gamble and Ardagh Packaging Finance, you can compare the effects of market volatilities on Procter Gamble and Ardagh 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 Ardagh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Ardagh.
Diversification Opportunities for Procter Gamble and Ardagh
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Ardagh is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Ardagh Packaging Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Packaging Finance 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 Ardagh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Packaging Finance has no effect on the direction of Procter Gamble i.e., Procter Gamble and Ardagh go up and down completely randomly.
Pair Corralation between Procter Gamble and Ardagh
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 6.11 times less return on investment than Ardagh. But when comparing it to its historical volatility, Procter Gamble is 4.89 times less risky than Ardagh. It trades about 0.07 of its potential returns per unit of risk. Ardagh Packaging Finance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,823 in Ardagh Packaging Finance on September 2, 2024 and sell it today you would earn a total of 1,777 from holding Ardagh Packaging Finance or generate 30.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.46% |
| Values | Daily Returns |
Procter Gamble vs. Ardagh Packaging Finance
Performance |
| Timeline |
| Procter Gamble |
| Ardagh Packaging Finance |
Procter Gamble and Ardagh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Ardagh
The main advantage of trading using opposite Procter Gamble and Ardagh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Ardagh 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 Ardagh will offset losses from the drop in Ardagh's long position.| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Estee Lauder Companies |
| Ardagh vs. Playtika Holding Corp | Ardagh vs. NextNav Warrant | Ardagh vs. Xponential Fitness | Ardagh vs. Emerson Radio |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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