Correlation Between Procter Gamble and TTK Healthcare
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By analyzing existing cross correlation between Procter Gamble Health and TTK Healthcare Limited, you can compare the effects of market volatilities on Procter Gamble and TTK Healthcare 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 TTK Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and TTK Healthcare.
Diversification Opportunities for Procter Gamble and TTK Healthcare
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Procter and TTK is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble Health and TTK Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTK Healthcare 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 TTK Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTK Healthcare has no effect on the direction of Procter Gamble i.e., Procter Gamble and TTK Healthcare go up and down completely randomly.
Pair Corralation between Procter Gamble and TTK Healthcare
Assuming the 90 days trading horizon Procter Gamble is expected to generate 1.2 times less return on investment than TTK Healthcare. But when comparing it to its historical volatility, Procter Gamble Health is 1.32 times less risky than TTK Healthcare. It trades about 0.04 of its potential returns per unit of risk. TTK Healthcare Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 129,233 in TTK Healthcare Limited on September 12, 2024 and sell it today you would earn a total of 21,882 from holding TTK Healthcare Limited or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble Health vs. TTK Healthcare Limited
Performance |
| Timeline |
| Procter Gamble Health |
| TTK Healthcare |
Procter Gamble and TTK Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and TTK Healthcare
The main advantage of trading using opposite Procter Gamble and TTK Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, TTK Healthcare 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 TTK Healthcare will offset losses from the drop in TTK Healthcare's long position.| Procter Gamble vs. Reliance Industries Limited | Procter Gamble vs. Tata Consultancy Services | Procter Gamble vs. HDFC Bank Limited | Procter Gamble vs. Bharti Airtel Limited |
| TTK Healthcare vs. Reliance Industries Limited | TTK Healthcare vs. Tata Consultancy Services | TTK Healthcare vs. HDFC Bank Limited | TTK Healthcare vs. Bharti Airtel 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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