Correlation Between Procter Gamble and BANCO
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By analyzing existing cross correlation between Procter Gamble and BANCO SANTANDER SA, you can compare the effects of market volatilities on Procter Gamble and BANCO 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 BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and BANCO.
Diversification Opportunities for Procter Gamble and BANCO
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Procter and BANCO is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and BANCO SANTANDER SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANCO SANTANDER SA 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 BANCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANCO SANTANDER SA has no effect on the direction of Procter Gamble i.e., Procter Gamble and BANCO go up and down completely randomly.
Pair Corralation between Procter Gamble and BANCO
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.33 times more return on investment than BANCO. However, Procter Gamble is 1.33 times more volatile than BANCO SANTANDER SA. It trades about 0.14 of its potential returns per unit of risk. BANCO SANTANDER SA is currently generating about -0.16 per unit of risk. If you would invest 16,584 in Procter Gamble on September 13, 2024 and sell it today you would earn a total of 507.00 from holding Procter Gamble or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Procter Gamble vs. BANCO SANTANDER SA
Performance |
| Timeline |
| Procter Gamble |
| BANCO SANTANDER SA |
Procter Gamble and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and BANCO
The main advantage of trading using opposite Procter Gamble and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, BANCO 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 BANCO will offset losses from the drop in BANCO's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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