Correlation Between Procter Gamble and GraniteShares 15x

Can any of the company-specific risk be diversified away by investing in both Procter Gamble and GraniteShares 15x 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 GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Procter Gamble and GraniteShares 15x Long, you can compare the effects of market volatilities on Procter Gamble and GraniteShares 15x 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 GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and GraniteShares 15x.

Diversification Opportunities for Procter Gamble and GraniteShares 15x

-0.5

Correlation Coefficient

Procter Gamble  GraniteShares 15x

Very good diversification

The 3 months correlation between Procter and GraniteShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and GraniteShares 15x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 15x Long 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 GraniteShares 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 15x Long has no effect on the direction of Procter Gamble i.e., Procter Gamble and GraniteShares 15x go up and down completely randomly.

Pair Corralation between Procter Gamble and GraniteShares 15x

Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 14.1 times less return on investment than GraniteShares 15x. But when comparing it to its historical volatility, Procter Gamble is 5.35 times less risky than GraniteShares 15x. It trades about 0.06 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,731  in GraniteShares 15x Long on September 1, 2024 and sell it today you would earn a total of  2,458  from holding GraniteShares 15x Long or generate 51.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Procter Gamble  vs.  GraniteShares 15x Long

Procter Gamble

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Procter Gamble are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Procter Gamble is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

GraniteShares 15x Long

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 15x Long are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, GraniteShares 15x disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Procter Gamble and GraniteShares 15x

The main advantage of trading using opposite Procter Gamble and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, GraniteShares 15x 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 GraniteShares 15x will offset losses from the drop in GraniteShares 15x's long position.

The idea behind Procter Gamble and GraniteShares 15x Long 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..