Correlation Between Palmer Square and COLGATE
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By analyzing existing cross correlation between Palmer Square Ultra Short and COLGATE PALMOLIVE MEDIUM TERM, you can compare the effects of market volatilities on Palmer Square and COLGATE 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 Palmer Square with a short position of COLGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palmer Square and COLGATE.
Diversification Opportunities for Palmer Square and COLGATE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palmer and COLGATE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Palmer Square Ultra Short and COLGATE PALMOLIVE MEDIUM TERM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLGATE PALMOLIVE and Palmer Square 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 Palmer Square Ultra Short are associated (or correlated) with COLGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLGATE PALMOLIVE has no effect on the direction of Palmer Square i.e., Palmer Square and COLGATE go up and down completely randomly.
Pair Corralation between Palmer Square and COLGATE
Assuming the 90 days horizon Palmer Square Ultra Short is expected to generate 0.02 times more return on investment than COLGATE. However, Palmer Square Ultra Short is 40.98 times less risky than COLGATE. It trades about 0.71 of its potential returns per unit of risk. COLGATE PALMOLIVE MEDIUM TERM is currently generating about -0.08 per unit of risk. If you would invest 1,988 in Palmer Square Ultra Short on September 25, 2024 and sell it today you would earn a total of 23.00 from holding Palmer Square Ultra Short or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 74.6% |
Values | Daily Returns |
Palmer Square Ultra Short vs. COLGATE PALMOLIVE MEDIUM TERM
Performance |
Timeline |
Palmer Square Ultra |
COLGATE PALMOLIVE |
Palmer Square and COLGATE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palmer Square and COLGATE
The main advantage of trading using opposite Palmer Square and COLGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palmer Square position performs unexpectedly, COLGATE 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 COLGATE will offset losses from the drop in COLGATE's long position.Palmer Square vs. Palmer Square Ssi | Palmer Square vs. Short Term Income Fund | Palmer Square vs. Palmer Square Income | Palmer Square vs. Acm Dynamic Opportunity |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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