This module allows you to analyze existing cross correlation between The Procter Gamble Company and SPTSX Comp. You can compare the effects of market volatilities on Procter Gamble and SPTSX Comp 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 SPTSX Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and SPTSX Comp.
|Horizon||30 Days Login to change|
Predicted Return Density
The Procter Gamble Company vs. SPTSX Comp
Allowing for the 30-days total investment horizon, The Procter Gamble Company is expected to generate 2.02 times more return on investment than SPTSX Comp. However, Procter Gamble is 2.02 times more volatile than SPTSX Comp. It trades about 0.18 of its potential returns per unit of risk. SPTSX Comp is currently generating about 0.02 per unit of risk. If you would invest 10,733 in The Procter Gamble Company on June 19, 2019 and sell it today you would earn a total of 811.00 from holding The Procter Gamble Company or generate 7.56% return on investment over 30 days.
Pair Corralation between Procter Gamble and SPTSX Comp
|Time Period||2 Months [change]|
Diversification Opportunities for Procter Gamble and SPTSX Comp
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding The Procter Gamble Company and SPTSX Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPTSX Comp 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 The Procter Gamble Company are associated (or correlated) with SPTSX Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPTSX Comp has no effect on the direction of Procter Gamble i.e. Procter Gamble and SPTSX Comp go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.