Correlation Between Ligand Pharms and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both Ligand Pharms 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 Ligand Pharms and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ligand Pharms Glucagon and Procter Gamble, you can compare the effects of market volatilities on Ligand Pharms 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 Ligand Pharms with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligand Pharms and Procter Gamble.
Diversification Opportunities for Ligand Pharms and Procter Gamble
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ligand and Procter is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ligand Pharms Glucagon and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and Ligand Pharms 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 Ligand Pharms Glucagon 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 Ligand Pharms i.e., Ligand Pharms and Procter Gamble go up and down completely randomly.
Pair Corralation between Ligand Pharms and Procter Gamble
Assuming the 90 days horizon Ligand Pharms Glucagon is expected to generate 61.18 times more return on investment than Procter Gamble. However, Ligand Pharms is 61.18 times more volatile than Procter Gamble. It trades about 0.32 of its potential returns per unit of risk. Procter Gamble is currently generating about 0.12 per unit of risk. If you would invest 0.15 in Ligand Pharms Glucagon on January 26, 2024 and sell it today you would earn a total of 0.15 from holding Ligand Pharms Glucagon or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.13% |
| Values | Daily Returns |
Ligand Pharms Glucagon vs. Procter Gamble
Performance |
| Timeline |
| Ligand Pharms Glucagon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Procter Gamble |
Ligand Pharms and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligand Pharms and Procter Gamble
The main advantage of trading using opposite Ligand Pharms and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligand Pharms 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.| Ligand Pharms vs. Niagara Mohawk Power | Ligand Pharms vs. The Siam Cement | Ligand Pharms vs. Oaktree Capital Group |
| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Honest Company | Procter Gamble vs. Hims Hers Health | Procter Gamble vs. European Wax Center |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |