Correlation Between Procter Gamble and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Edgewell Personal 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 Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Edgewell Personal Care, you can compare the effects of market volatilities on Procter Gamble and Edgewell Personal 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 Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Edgewell Personal.
Diversification Opportunities for Procter Gamble and Edgewell Personal
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Procter and Edgewell is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care 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 Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Procter Gamble i.e., Procter Gamble and Edgewell Personal go up and down completely randomly.
Pair Corralation between Procter Gamble and Edgewell Personal
If you would invest 16,822 in Procter Gamble on September 25, 2024 and sell it today you would earn a total of 58.50 from holding Procter Gamble or generate 0.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Procter Gamble vs. Edgewell Personal Care
Performance |
Timeline |
Procter Gamble |
Edgewell Personal Care |
Procter Gamble and Edgewell Personal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Procter Gamble and Edgewell Personal
The main advantage of trading using opposite Procter Gamble and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Estee Lauder Companies | Procter Gamble vs. ELF Beauty | Procter Gamble vs. Coty Inc |
Edgewell Personal vs. Kimberly Clark | Edgewell Personal vs. Colgate Palmolive | Edgewell Personal vs. Procter Gamble | Edgewell Personal vs. The Clorox |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |