Correlation Between Procter Gamble and PETRO
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By analyzing existing cross correlation between Procter Gamble and PETRO CDA 7 percent, you can compare the effects of market volatilities on Procter Gamble and PETRO 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 PETRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and PETRO.
Diversification Opportunities for Procter Gamble and PETRO
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and PETRO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and PETRO CDA 7 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETRO CDA 7 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 PETRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETRO CDA 7 has no effect on the direction of Procter Gamble i.e., Procter Gamble and PETRO go up and down completely randomly.
Pair Corralation between Procter Gamble and PETRO
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.34 times more return on investment than PETRO. However, Procter Gamble is 1.34 times more volatile than PETRO CDA 7 percent. It trades about 0.36 of its potential returns per unit of risk. PETRO CDA 7 percent is currently generating about -0.12 per unit of risk. If you would invest 16,510 in Procter Gamble on September 2, 2024 and sell it today you would earn a total of 1,416 from holding Procter Gamble or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Procter Gamble vs. PETRO CDA 7 percent
Performance |
| Timeline |
| Procter Gamble |
| PETRO CDA 7 |
Procter Gamble and PETRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and PETRO
The main advantage of trading using opposite Procter Gamble and PETRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, PETRO 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 PETRO will offset losses from the drop in PETRO's long position.| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Estee Lauder Companies |
| PETRO vs. Perseus Mining Limited | PETRO vs. Life Time Group | PETRO vs. HF Sinclair Corp | PETRO vs. Mangazeya Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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