Correlation Analysis Between Procter Gamble and NIKKEI 225

This module allows you to analyze existing cross correlation between The Procter Gamble Company and NIKKEI 225. You can compare the effects of market volatilities on Procter Gamble and NIKKEI 225 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 NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and NIKKEI 225.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

The Procter Gamble Company  vs.  NIKKEI 225

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Procter Gamble Company is expected to generate 0.86 times more return on investment than NIKKEI 225. However, The Procter Gamble Company is 1.17 times less risky than NIKKEI 225. It trades about 0.17 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.12 per unit of risk. If you would invest  9,983  in The Procter Gamble Company on March 25, 2019 and sell it today you would earn a total of  463.00  from holding The Procter Gamble Company or generate 4.64% return on investment over 30 days.

Pair Corralation between Procter Gamble and NIKKEI 225

0.72
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy79.41%
ValuesDaily Returns

Diversification Opportunities for Procter Gamble and NIKKEI 225

The Procter Gamble Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Procter Gamble Company and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 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 NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of Procter Gamble i.e. Procter Gamble and NIKKEI 225 go up and down completely randomly.
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See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
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