Correlation Between REC and Procter Gamble
Specify exactly 2 symbols:
By analyzing existing cross correlation between REC Limited and Procter Gamble Health, you can compare the effects of market volatilities on REC and Procter Gamble 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 REC with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of REC and Procter Gamble.
Diversification Opportunities for REC and Procter Gamble
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between REC and Procter is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding REC Limited and Procter Gamble Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble Health and REC 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 REC Limited are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble Health has no effect on the direction of REC i.e., REC and Procter Gamble go up and down completely randomly.
Pair Corralation between REC and Procter Gamble
Assuming the 90 days trading horizon REC Limited is expected to under-perform the Procter Gamble. In addition to that, REC is 1.99 times more volatile than Procter Gamble Health. It trades about -0.18 of its total potential returns per unit of risk. Procter Gamble Health is currently generating about 0.02 per unit of volatility. If you would invest 523,805 in Procter Gamble Health on November 1, 2024 and sell it today you would earn a total of 1,625 from holding Procter Gamble Health or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
REC Limited vs. Procter Gamble Health
Performance |
| Timeline |
| REC Limited |
| Procter Gamble Health |
REC and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REC and Procter Gamble
The main advantage of trading using opposite REC and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REC position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| REC vs. Procter Gamble Health | REC vs. Hi Tech Pipes Limited | REC vs. Lotus Eye Hospital | REC vs. The Byke Hospitality |
| Procter Gamble vs. FCS Software Solutions | Procter Gamble vs. Selan Exploration Technology | Procter Gamble vs. Le Travenues Technology | Procter Gamble vs. Agro Tech Foods |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |