Correlation Between Procter Gamble and One Choice

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

Diversification Opportunities for Procter Gamble and One Choice

0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Procter and AAAFX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and One Choice Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice Blend and Procter Gamble 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 are associated (or correlated) with One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice Blend has no effect on the direction of Procter Gamble i.e., Procter Gamble and One Choice go up and down completely randomly.

Pair Corralation between Procter Gamble and One Choice

Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.14 times less return on investment than One Choice. In addition to that, Procter Gamble is 3.49 times more volatile than One Choice Blend. It trades about 0.12 of its total potential returns per unit of risk. One Choice Blend is currently generating about 0.48 per unit of volatility. If you would invest  904.00  in One Choice Blend on May 18, 2022 and sell it today you would earn a total of  48.00  from holding One Choice Blend or generate 5.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Procter Gamble  vs.  One Choice Blend

 Performance (%) 
       Timeline  
Procter Gamble 
Procter Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Procter Gamble are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. 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 Blend 
AAAFX Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in One Choice Blend are ranked lower than 6 (%) 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 and One Choice Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Procter Gamble and One Choice

The main advantage of trading using opposite Procter Gamble and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.
The idea behind Procter Gamble and One Choice Blend 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
CEO Directory
Screen CEOs from public companies around the world
Go