Correlation Between Oakmark Equity and Procter Gamble

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oakmark Equity 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 Oakmark Equity and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Equity And and Procter Gamble, you can compare the effects of market volatilities on Oakmark Equity 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 Oakmark Equity with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Equity and Procter Gamble.

Diversification Opportunities for Oakmark Equity and Procter Gamble

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Oakmark and Procter is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Equity And and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and Oakmark Equity 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 Oakmark Equity And 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 Oakmark Equity i.e., Oakmark Equity and Procter Gamble go up and down completely randomly.

Pair Corralation between Oakmark Equity and Procter Gamble

Assuming the 90 days horizon Oakmark Equity And is expected to generate 0.95 times more return on investment than Procter Gamble. However, Oakmark Equity And is 1.05 times less risky than Procter Gamble. It trades about -0.32 of its potential returns per unit of risk. Procter Gamble is currently generating about -0.33 per unit of risk. If you would invest  3,010  in Oakmark Equity And on July 4, 2022 and sell it today you would lose (225.00)  from holding Oakmark Equity And or give up 7.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Oakmark Equity And  vs.  Procter Gamble

 Performance (%) 
       Timeline  
Oakmark Equity And 
Oakmark Performance
0 of 100
Over the last 90 days Oakmark Equity And has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Oakmark Equity is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Oakmark 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 conflicting performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in November 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Procter Price Channel

Oakmark Equity and Procter Gamble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oakmark Equity and Procter Gamble

The main advantage of trading using opposite Oakmark Equity and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Equity 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.
Oakmark Equity vs. American Express
The idea behind Oakmark Equity And 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.
Procter Gamble vs. Amazon Inc
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go