Correlation Between G Tec and Procter Gamble
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By analyzing existing cross correlation between G Tec Jainx Education and Procter Gamble Health, you can compare the effects of market volatilities on G Tec 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 G Tec with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Tec and Procter Gamble.
Diversification Opportunities for G Tec and Procter Gamble
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GTECJAINX and Procter is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding G Tec Jainx Education and Procter Gamble Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble Health and G Tec 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 G Tec Jainx Education 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 Health has no effect on the direction of G Tec i.e., G Tec and Procter Gamble go up and down completely randomly.
Pair Corralation between G Tec and Procter Gamble
Assuming the 90 days trading horizon G Tec Jainx Education is expected to under-perform the Procter Gamble. In addition to that, G Tec is 1.74 times more volatile than Procter Gamble Health. It trades about -0.2 of its total potential returns per unit of risk. Procter Gamble Health is currently generating about 0.06 per unit of volatility. If you would invest 516,548 in Procter Gamble Health on September 23, 2024 and sell it today you would earn a total of 30,137 from holding Procter Gamble Health or generate 5.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
G Tec Jainx Education vs. Procter Gamble Health
Performance |
Timeline |
G Tec Jainx |
Procter Gamble Health |
G Tec and Procter Gamble Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Tec and Procter Gamble
The main advantage of trading using opposite G Tec and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Tec 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.G Tec vs. NIIT LEARNING SYSTEMS | G Tec vs. NIIT Limited | G Tec vs. Veranda Learning Solutions | G Tec vs. Aptech Limited |
Procter Gamble vs. Reliance Industries Limited | Procter Gamble vs. Tata Consultancy Services | Procter Gamble vs. HDFC Bank Limited | Procter Gamble vs. Bharti Airtel Limited |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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