Correlation Between Procter Gamble and SUMIBK
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By analyzing existing cross correlation between Procter Gamble and SUMIBK 2222 17 SEP 31, you can compare the effects of market volatilities on Procter Gamble and SUMIBK 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 SUMIBK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and SUMIBK.
Diversification Opportunities for Procter Gamble and SUMIBK
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and SUMIBK is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and SUMIBK 2222 17 SEP 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMIBK 2222 17 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 SUMIBK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMIBK 2222 17 has no effect on the direction of Procter Gamble i.e., Procter Gamble and SUMIBK go up and down completely randomly.
Pair Corralation between Procter Gamble and SUMIBK
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.84 times more return on investment than SUMIBK. However, Procter Gamble is 1.19 times less risky than SUMIBK. It trades about 0.05 of its potential returns per unit of risk. SUMIBK 2222 17 SEP 31 is currently generating about 0.01 per unit of risk. If you would invest 14,509 in Procter Gamble on September 2, 2024 and sell it today you would earn a total of 3,417 from holding Procter Gamble or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.3% |
| Values | Daily Returns |
Procter Gamble vs. SUMIBK 2222 17 SEP 31
Performance |
| Timeline |
| Procter Gamble |
| SUMIBK 2222 17 |
Procter Gamble and SUMIBK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and SUMIBK
The main advantage of trading using opposite Procter Gamble and SUMIBK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, SUMIBK 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 SUMIBK will offset losses from the drop in SUMIBK'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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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