Correlation Between SANOFI S and Procter Gamble
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By analyzing existing cross correlation between SANOFI S HEALTHC and Procter Gamble Health, you can compare the effects of market volatilities on SANOFI S 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 SANOFI S with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOFI S and Procter Gamble.
Diversification Opportunities for SANOFI S and Procter Gamble
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SANOFI and Procter is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SANOFI S HEALTHC 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 SANOFI S 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 SANOFI S HEALTHC 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 SANOFI S i.e., SANOFI S and Procter Gamble go up and down completely randomly.
Pair Corralation between SANOFI S and Procter Gamble
Assuming the 90 days trading horizon SANOFI S HEALTHC is expected to generate 0.42 times more return on investment than Procter Gamble. However, SANOFI S HEALTHC is 2.39 times less risky than Procter Gamble. It trades about -0.08 of its potential returns per unit of risk. Procter Gamble Health is currently generating about -0.05 per unit of risk. If you would invest 491,755 in SANOFI S HEALTHC on November 7, 2024 and sell it today you would lose (18,590) from holding SANOFI S HEALTHC or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOFI S HEALTHC vs. Procter Gamble Health
Performance |
| Timeline |
| SANOFI S HEALTHC |
| Procter Gamble Health |
SANOFI S and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOFI S and Procter Gamble
The main advantage of trading using opposite SANOFI S and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOFI S 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.| SANOFI S vs. DIAMINES AND CHEMICALS | SANOFI S vs. Medplus Health Services | SANOFI S vs. IOL Chemicals and | SANOFI S vs. Apollo Hospitals Enterprise |
| Procter Gamble vs. State Bank of | Procter Gamble vs. Life Insurance | Procter Gamble vs. HDFC Bank Limited | Procter Gamble vs. ICICI Bank 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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