Correlation Between Procter Gamble and Kinea Securities
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Kinea Securities 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 Kinea Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Procter Gamble and Kinea Securities Fundo, you can compare the effects of market volatilities on Procter Gamble and Kinea Securities 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 Kinea Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Kinea Securities.
Diversification Opportunities for Procter Gamble and Kinea Securities
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Kinea is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Procter Gamble and Kinea Securities Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Securities Fundo 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 The Procter Gamble are associated (or correlated) with Kinea Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Securities Fundo has no effect on the direction of Procter Gamble i.e., Procter Gamble and Kinea Securities go up and down completely randomly.
Pair Corralation between Procter Gamble and Kinea Securities
Assuming the 90 days trading horizon The Procter Gamble is expected to generate 1.37 times more return on investment than Kinea Securities. However, Procter Gamble is 1.37 times more volatile than Kinea Securities Fundo. It trades about 0.27 of its potential returns per unit of risk. Kinea Securities Fundo is currently generating about -0.26 per unit of risk. If you would invest 6,733 in The Procter Gamble on August 30, 2024 and sell it today you would earn a total of 849.00 from holding The Procter Gamble or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Procter Gamble vs. Kinea Securities Fundo
Performance |
| Timeline |
| Procter Gamble |
| Kinea Securities Fundo |
Procter Gamble and Kinea Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Kinea Securities
The main advantage of trading using opposite Procter Gamble and Kinea Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Kinea Securities 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 Kinea Securities will offset losses from the drop in Kinea Securities' long position.| Procter Gamble vs. Micron Technology | Procter Gamble vs. BIONTECH SE DRN | Procter Gamble vs. Iron Mountain Incorporated | Procter Gamble vs. Electronic Arts |
| Kinea Securities vs. Kinea Oportunidades Real | Kinea Securities vs. Kinea Indices Precos | Kinea Securities vs. Kinea Creditas Fundo | Kinea Securities vs. Kinea Renda Imobiliria |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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