Correlation Between TTK Healthcare and Procter Gamble
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By analyzing existing cross correlation between TTK Healthcare Limited and Procter Gamble Health, you can compare the effects of market volatilities on TTK Healthcare 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 TTK Healthcare with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTK Healthcare and Procter Gamble.
Diversification Opportunities for TTK Healthcare and Procter Gamble
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TTK and Procter is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TTK Healthcare 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 TTK Healthcare 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 TTK Healthcare 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 TTK Healthcare i.e., TTK Healthcare and Procter Gamble go up and down completely randomly.
Pair Corralation between TTK Healthcare and Procter Gamble
Assuming the 90 days trading horizon TTK Healthcare Limited is expected to generate 1.32 times more return on investment than Procter Gamble. However, TTK Healthcare is 1.32 times more volatile than Procter Gamble Health. It trades about 0.03 of its potential returns per unit of risk. Procter Gamble Health is currently generating about 0.04 per unit of risk. 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 |
TTK Healthcare Limited vs. Procter Gamble Health
Performance |
| Timeline |
| TTK Healthcare |
| Procter Gamble Health |
TTK Healthcare and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTK Healthcare and Procter Gamble
The main advantage of trading using opposite TTK Healthcare and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTK Healthcare 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.| TTK Healthcare vs. Reliance Industries Limited | TTK Healthcare vs. Tata Consultancy Services | TTK Healthcare vs. HDFC Bank Limited | TTK Healthcare vs. Bharti Airtel Limited |
| Procter Gamble vs. Reliance Industries Limited | Procter Gamble vs. Tata Consultancy Services | Procter Gamble vs. HDFC Bank Limited | Procter Gamble 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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