Correlation Between Procter Gamble and SANOFI S
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By analyzing existing cross correlation between Procter Gamble Health and SANOFI S HEALTHC, you can compare the effects of market volatilities on Procter Gamble and SANOFI S 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 SANOFI S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and SANOFI S.
Diversification Opportunities for Procter Gamble and SANOFI S
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Procter and SANOFI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble Health and SANOFI S HEALTHC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOFI S HEALTHC 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 Health are associated (or correlated) with SANOFI S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOFI S HEALTHC has no effect on the direction of Procter Gamble i.e., Procter Gamble and SANOFI S go up and down completely randomly.
Pair Corralation between Procter Gamble and SANOFI S
Assuming the 90 days trading horizon Procter Gamble Health is expected to generate 0.71 times more return on investment than SANOFI S. However, Procter Gamble Health is 1.42 times less risky than SANOFI S. It trades about 0.03 of its potential returns per unit of risk. SANOFI S HEALTHC is currently generating about -0.02 per unit of risk. If you would invest 447,670 in Procter Gamble Health on August 26, 2024 and sell it today you would earn a total of 61,810 from holding Procter Gamble Health or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 12.92% |
| Values | Daily Returns |
Procter Gamble Health vs. SANOFI S HEALTHC
Performance |
| Timeline |
| Procter Gamble Health |
| SANOFI S HEALTHC |
Procter Gamble and SANOFI S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and SANOFI S
The main advantage of trading using opposite Procter Gamble and SANOFI S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, SANOFI S 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 SANOFI S will offset losses from the drop in SANOFI S's long position.| Procter Gamble vs. Kingfa Science Technology | Procter Gamble vs. Rico Auto Industries | Procter Gamble vs. GACM Technologies Limited | Procter Gamble vs. COSMO FIRST LIMITED |
| SANOFI S vs. Kingfa Science Technology | SANOFI S vs. Rico Auto Industries | SANOFI S vs. GACM Technologies Limited | SANOFI S vs. COSMO FIRST LIMITED |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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