Correlation Between Procter Gamble and BATSLN
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By analyzing existing cross correlation between Procter Gamble and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on Procter Gamble and BATSLN 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 BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and BATSLN.
Diversification Opportunities for Procter Gamble and BATSLN
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and BATSLN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 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 BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of Procter Gamble i.e., Procter Gamble and BATSLN go up and down completely randomly.
Pair Corralation between Procter Gamble and BATSLN
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.4 times more return on investment than BATSLN. However, Procter Gamble is 2.47 times less risky than BATSLN. It trades about 0.32 of its potential returns per unit of risk. BATSLN 475 01 NOV 42 is currently generating about -0.07 per unit of risk. If you would invest 16,616 in Procter Gamble on August 31, 2024 and sell it today you would earn a total of 1,320 from holding Procter Gamble or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Procter Gamble vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| Procter Gamble |
| BATSLN 475 01 |
Procter Gamble and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and BATSLN
The main advantage of trading using opposite Procter Gamble and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN's long position.| Procter Gamble vs. Aquagold International | Procter Gamble vs. Morningstar Unconstrained Allocation | Procter Gamble vs. Thrivent High Yield | Procter Gamble vs. Via Renewables |
| BATSLN vs. Q2 Holdings | BATSLN vs. Ecolab Inc | BATSLN vs. Definitive Healthcare Corp | BATSLN vs. Sealed Air |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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