Correlation Between Procter Gamble and TELUS
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By analyzing existing cross correlation between Procter Gamble and TELUS P 37, you can compare the effects of market volatilities on Procter Gamble and TELUS 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 TELUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and TELUS.
Diversification Opportunities for Procter Gamble and TELUS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and TELUS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and TELUS P 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS P 37 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 TELUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELUS P 37 has no effect on the direction of Procter Gamble i.e., Procter Gamble and TELUS go up and down completely randomly.
Pair Corralation between Procter Gamble and TELUS
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.15 times more return on investment than TELUS. However, Procter Gamble is 1.15 times more volatile than TELUS P 37. It trades about 0.06 of its potential returns per unit of risk. TELUS P 37 is currently generating about -0.12 per unit of risk. If you would invest 17,350 in Procter Gamble on September 2, 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. TELUS P 37
Performance |
| Timeline |
| Procter Gamble |
| TELUS P 37 |
Procter Gamble and TELUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and TELUS
The main advantage of trading using opposite Procter Gamble and TELUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, TELUS 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 TELUS will offset losses from the drop in TELUS'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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