Correlation Between Procter Gamble and ACAFP
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By analyzing existing cross correlation between Procter Gamble and ACAFP 475, you can compare the effects of market volatilities on Procter Gamble and ACAFP 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 ACAFP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and ACAFP.
Diversification Opportunities for Procter Gamble and ACAFP
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and ACAFP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and ACAFP 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACAFP 475 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 ACAFP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACAFP 475 has no effect on the direction of Procter Gamble i.e., Procter Gamble and ACAFP go up and down completely randomly.
Pair Corralation between Procter Gamble and ACAFP
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 4.64 times more return on investment than ACAFP. However, Procter Gamble is 4.64 times more volatile than ACAFP 475. It trades about 0.04 of its potential returns per unit of risk. ACAFP 475 is currently generating about 0.14 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 164.00 from holding Procter Gamble or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Procter Gamble vs. ACAFP 475
Performance |
| Timeline |
| Procter Gamble |
| ACAFP 475 |
Procter Gamble and ACAFP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and ACAFP
The main advantage of trading using opposite Procter Gamble and ACAFP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, ACAFP 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 ACAFP will offset losses from the drop in ACAFP's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| ACAFP vs. Delek Logistics Partners | ACAFP vs. Broadleaf Co | ACAFP vs. Sun Country Airlines | ACAFP vs. Chemours Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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