Correlation Between Procter Gamble and FORTUNE
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By analyzing existing cross correlation between Procter Gamble and FORTUNE BRANDS INC, you can compare the effects of market volatilities on Procter Gamble and FORTUNE 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 FORTUNE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and FORTUNE.
Diversification Opportunities for Procter Gamble and FORTUNE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Procter and FORTUNE is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and FORTUNE BRANDS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTUNE BRANDS INC 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 FORTUNE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTUNE BRANDS INC has no effect on the direction of Procter Gamble i.e., Procter Gamble and FORTUNE go up and down completely randomly.
Pair Corralation between Procter Gamble and FORTUNE
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 2.03 times more return on investment than FORTUNE. However, Procter Gamble is 2.03 times more volatile than FORTUNE BRANDS INC. It trades about 0.04 of its potential returns per unit of risk. FORTUNE BRANDS INC is currently generating about 0.0 per unit of risk. If you would invest 16,172 in Procter Gamble on November 28, 2024 and sell it today you would earn a total of 1,093 from holding Procter Gamble or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.08% |
| Values | Daily Returns |
Procter Gamble vs. FORTUNE BRANDS INC
Performance |
| Timeline |
| Procter Gamble |
| FORTUNE BRANDS INC |
Procter Gamble and FORTUNE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and FORTUNE
The main advantage of trading using opposite Procter Gamble and FORTUNE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, FORTUNE 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 FORTUNE will offset losses from the drop in FORTUNE'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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