Correlation Between Procter Gamble and Xp Industrial
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Xp Industrial 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 Xp Industrial 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 Xp Industrial Fundo, you can compare the effects of market volatilities on Procter Gamble and Xp Industrial 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 Xp Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Xp Industrial.
Diversification Opportunities for Procter Gamble and Xp Industrial
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and XPIN11 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding The Procter Gamble and Xp Industrial Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Industrial 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 Xp Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Industrial Fundo has no effect on the direction of Procter Gamble i.e., Procter Gamble and Xp Industrial go up and down completely randomly.
Pair Corralation between Procter Gamble and Xp Industrial
Assuming the 90 days trading horizon The Procter Gamble is expected to generate 1.62 times more return on investment than Xp Industrial. However, Procter Gamble is 1.62 times more volatile than Xp Industrial Fundo. It trades about 0.12 of its potential returns per unit of risk. Xp Industrial Fundo is currently generating about -0.07 per unit of risk. If you would invest 6,103 in The Procter Gamble on September 1, 2024 and sell it today you would earn a total of 1,480 from holding The Procter Gamble or generate 24.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
The Procter Gamble vs. Xp Industrial Fundo
Performance |
| Timeline |
| Procter Gamble |
| Xp Industrial Fundo |
Procter Gamble and Xp Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Xp Industrial
The main advantage of trading using opposite Procter Gamble and Xp Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Xp Industrial 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 Xp Industrial will offset losses from the drop in Xp Industrial's long position.| Procter Gamble vs. Charter Communications | Procter Gamble vs. Spotify Technology SA | Procter Gamble vs. Waste Management | Procter Gamble vs. Electronic Arts |
| Xp Industrial vs. BTG Pactual Logstica | Xp Industrial vs. Fundo Investimento Imobiliario | Xp Industrial vs. KILIMA VOLKANO RECEBVEIS | Xp Industrial vs. DEVANT PROPERTIES FUNDO |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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