Correlation Between Procter Gamble and SHERWIN
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By analyzing existing cross correlation between Procter Gamble and SHERWIN WILLIAMS 33 percent, you can compare the effects of market volatilities on Procter Gamble and SHERWIN 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 SHERWIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and SHERWIN.
Diversification Opportunities for Procter Gamble and SHERWIN
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and SHERWIN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and SHERWIN WILLIAMS 33 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHERWIN WILLIAMS 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 SHERWIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHERWIN WILLIAMS has no effect on the direction of Procter Gamble i.e., Procter Gamble and SHERWIN go up and down completely randomly.
Pair Corralation between Procter Gamble and SHERWIN
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 2.45 times more return on investment than SHERWIN. However, Procter Gamble is 2.45 times more volatile than SHERWIN WILLIAMS 33 percent. It trades about 0.36 of its potential returns per unit of risk. SHERWIN WILLIAMS 33 percent is currently generating about -0.26 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 | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Procter Gamble vs. SHERWIN WILLIAMS 33 percent
Performance |
| Timeline |
| Procter Gamble |
| SHERWIN WILLIAMS |
Procter Gamble and SHERWIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and SHERWIN
The main advantage of trading using opposite Procter Gamble and SHERWIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, SHERWIN 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 SHERWIN will offset losses from the drop in SHERWIN'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 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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