Correlation Between PROCTER and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between PROCTER GAMBLE 35 and Dow Jones Industrial, you can compare the effects of market volatilities on PROCTER and Dow Jones 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 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROCTER and Dow Jones.
Diversification Opportunities for PROCTER and Dow Jones
Weak diversification
The 3 months correlation between PROCTER and Dow is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PROCTER GAMBLE 35 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and PROCTER 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 35 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of PROCTER i.e., PROCTER and Dow Jones go up and down completely randomly.
Pair Corralation between PROCTER and Dow Jones
Assuming the 90 days trading horizon PROCTER is expected to generate 1.48 times less return on investment than Dow Jones. In addition to that, PROCTER is 1.47 times more volatile than Dow Jones Industrial. It trades about 0.12 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
PROCTER GAMBLE 35 vs. Dow Jones Industrial
Performance |
| Timeline |
PROCTER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PROCTER GAMBLE 35
Pair trading matchups for PROCTER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PROCTER and Dow Jones
The main advantage of trading using opposite PROCTER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROCTER position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| PROCTER vs. Q2 Holdings | PROCTER vs. Iridium Communications | PROCTER vs. Joint Stock | PROCTER vs. Sapiens International |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |