Correlation Between Procter Gamble and US Xpress
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and US Xpress at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Procter Gamble and US Xpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and US Xpress Enterprises, you can compare the effects of market volatilities on Procter Gamble and US Xpress 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 US Xpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and US Xpress.
Diversification Opportunities for Procter Gamble and US Xpress
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and USX is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and US Xpress Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Xpress Enterprises 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 US Xpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Xpress Enterprises has no effect on the direction of Procter Gamble i.e., Procter Gamble and US Xpress go up and down completely randomly.
Pair Corralation between Procter Gamble and US Xpress
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 | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Procter Gamble vs. US Xpress Enterprises
Performance |
| Timeline |
| Procter Gamble |
| US Xpress Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Procter Gamble and US Xpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and US Xpress
The main advantage of trading using opposite Procter Gamble and US Xpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, US Xpress 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 US Xpress will offset losses from the drop in US Xpress' long position.| Procter Gamble vs. Aquagold International | Procter Gamble vs. Morningstar Unconstrained Allocation | Procter Gamble vs. Thrivent High Yield | Procter Gamble vs. Via Renewables |
| US Xpress vs. Heartland Express | US Xpress vs. Universal Logistics Holdings | US Xpress vs. Marten Transport | US Xpress vs. Werner Enterprises |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |