Correlation Between Phillips-Van Heusen and Procter Gamble

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

Diversification Opportunities for Phillips-Van Heusen and Procter Gamble

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Phillips-Van and Procter is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Phillips-Van Heusen Corp and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and Phillips-Van Heusen 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 Phillips-Van Heusen Corp 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 Phillips-Van Heusen i.e., Phillips-Van Heusen and Procter Gamble go up and down completely randomly.

Pair Corralation between Phillips-Van Heusen and Procter Gamble

Considering the 90-day investment horizon Phillips-Van Heusen Corp is expected to under-perform the Procter Gamble. In addition to that, Phillips-Van Heusen is 2.56 times more volatile than Procter Gamble. It trades about -0.08 of its total potential returns per unit of risk. Procter Gamble is currently generating about -0.02 per unit of volatility. If you would invest  14,055  in Procter Gamble on July 3, 2022 and sell it today you would lose (1,430)  from holding Procter Gamble or give up 10.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Phillips-Van Heusen Corp  vs.  Procter Gamble

 Performance (%) 
       Timeline  
Phillips-Van Heusen Corp 
Phillips-Van Performance
0 of 100
Over the last 90 days Phillips-Van Heusen Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Phillips-Van 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

Phillips-Van Heusen and Procter Gamble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Phillips-Van Heusen and Procter Gamble

The main advantage of trading using opposite Phillips-Van Heusen and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips-Van Heusen 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.
Phillips-Van Heusen vs. Kunlun Energy ADR
Phillips-Van Heusen vs. Neste Oil Oyj
Phillips-Van Heusen vs. Valero Energy Corp
Phillips-Van Heusen vs. HF Sinclair Corp
The idea behind Phillips-Van Heusen Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go