Correlation Between Procter Gamble and NATIONAL
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By analyzing existing cross correlation between Procter Gamble and NATIONAL RETAIL PPTYS, you can compare the effects of market volatilities on Procter Gamble and NATIONAL 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 NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and NATIONAL.
Diversification Opportunities for Procter Gamble and NATIONAL
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and NATIONAL is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and NATIONAL RETAIL PPTYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL RETAIL PPTYS 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 NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL RETAIL PPTYS has no effect on the direction of Procter Gamble i.e., Procter Gamble and NATIONAL go up and down completely randomly.
Pair Corralation between Procter Gamble and NATIONAL
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.83 times more return on investment than NATIONAL. However, Procter Gamble is 1.83 times more volatile than NATIONAL RETAIL PPTYS. It trades about 0.06 of its potential returns per unit of risk. NATIONAL RETAIL PPTYS is currently generating about -0.12 per unit of risk. If you would invest 17,350 in Procter Gamble on September 3, 2024 and sell it today you would earn a total of 576.00 from holding Procter Gamble or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Procter Gamble vs. NATIONAL RETAIL PPTYS
Performance |
| Timeline |
| Procter Gamble |
| NATIONAL RETAIL PPTYS |
Procter Gamble and NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and NATIONAL
The main advantage of trading using opposite Procter Gamble and NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, NATIONAL 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 NATIONAL will offset losses from the drop in NATIONAL's long position.| Procter Gamble vs. Highway Holdings Limited | Procter Gamble vs. QCR Holdings | Procter Gamble vs. Partner Communications | Procter Gamble vs. Acumen Pharmaceuticals |
| NATIONAL vs. The Travelers Companies | NATIONAL vs. GE Aerospace | NATIONAL vs. Walmart | NATIONAL vs. Pfizer Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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