Correlation Between One Choice and Procter Gamble

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both One Choice and Procter Gamble at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining One Choice and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Choice Blend and Procter Gamble, you can compare the effects of market volatilities on One Choice 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 One Choice with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Choice and Procter Gamble.

Diversification Opportunities for One Choice and Procter Gamble

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between AAAFX and Procter is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding One Choice Blend and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and One Choice 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 One Choice Blend 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 has no effect on the direction of One Choice i.e., One Choice and Procter Gamble go up and down completely randomly.

Pair Corralation between One Choice and Procter Gamble

Assuming the 90 days horizon One Choice Blend is expected to generate 0.3 times more return on investment than Procter Gamble. However, One Choice Blend is 3.35 times less risky than Procter Gamble. It trades about 0.51 of its potential returns per unit of risk. Procter Gamble is currently generating about 0.05 per unit of risk. If you would invest  897.00  in One Choice Blend on May 15, 2022 and sell it today you would earn a total of  55.00  from holding One Choice Blend or generate 6.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

One Choice Blend  vs.  Procter Gamble

 Performance (%) 
       Timeline  
One Choice Blend 
AAAFX Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in One Choice Blend are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, One Choice is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AAAFX Price Channel

Procter Gamble 
Procter Performance
0 of 100
Over the last 90 days Procter Gamble has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Procter Gamble is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Procter Price Channel

One Choice and Procter Gamble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with One Choice and Procter Gamble

The main advantage of trading using opposite One Choice and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Choice 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.

One Choice Blend

Pair trading matchups for One Choice

The idea behind One Choice Blend and Procter Gamble pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go