Correlation Between Procter Gamble and CONSUMERS
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By analyzing existing cross correlation between Procter Gamble and CONSUMERS ENERGY 395, you can compare the effects of market volatilities on Procter Gamble and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and CONSUMERS.
Diversification Opportunities for Procter Gamble and CONSUMERS
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and CONSUMERS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and CONSUMERS ENERGY 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 5 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 5 has no effect on the direction of Procter Gamble i.e., Procter Gamble and CONSUMERS go up and down completely randomly.
Pair Corralation between Procter Gamble and CONSUMERS
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.45 times more return on investment than CONSUMERS. However, Procter Gamble is 1.45 times more volatile than CONSUMERS ENERGY 395. It trades about 0.06 of its potential returns per unit of risk. CONSUMERS ENERGY 395 is currently generating about 0.05 per unit of risk. If you would invest 16,966 in Procter Gamble on November 28, 2024 and sell it today you would earn a total of 299.00 from holding Procter Gamble or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
Procter Gamble vs. CONSUMERS ENERGY 395
Performance |
| Timeline |
| Procter Gamble |
| CONSUMERS ENERGY 5 |
Procter Gamble and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and CONSUMERS
The main advantage of trading using opposite Procter Gamble and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| CONSUMERS vs. Altria Group | CONSUMERS vs. ZhongAn Online P | CONSUMERS vs. 51Talk Online Education | CONSUMERS vs. Stagwell |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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