Correlation Between INFUSION BRANDS and Procter Gamble

By analyzing existing cross correlation between INFUSION BRANDS INTERNATIONAL and Procter Gamble, you can compare the effects of market volatilities on INFUSION BRANDS 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 INFUSION BRANDS with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFUSION BRANDS and Procter Gamble.

Specify exactly 2 symbols:

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

Diversification Opportunities for INFUSION BRANDS and Procter Gamble

0.0
  Correlation Coefficient
INFUSION BRANDS INTE
Procter Gamble

Pay attention - limited upside

The 3 months correlation between INFUSION and Procter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INFUSION BRANDS INTERNATIONAL and Procter Gamble in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and INFUSION BRANDS 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 INFUSION BRANDS INTERNATIONAL 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 INFUSION BRANDS i.e., INFUSION BRANDS and Procter Gamble go up and down completely randomly.

Pair Corralation between INFUSION BRANDS and Procter Gamble

Given the investment horizon of 90 days INFUSION BRANDS INTERNATIONAL is expected to generate 20.34 times more return on investment than Procter Gamble. However, INFUSION BRANDS is 20.34 times more volatile than Procter Gamble. It trades about 0.08 of its potential returns per unit of risk. Procter Gamble is currently generating about 0.04 per unit of risk. If you would invest  0.30  in INFUSION BRANDS INTERNATIONAL on October 18, 2021 and sell it today you would lose (0.29)  from holding INFUSION BRANDS INTERNATIONAL or give up 96.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy97.21%
ValuesDaily Returns

INFUSION BRANDS INTERNATIONAL   vs.  Procter Gamble

 Performance (%) 
      Timeline 
INFUSION BRANDS INTE 
INFUSION Performance
0 of 100
Over the last 90 days INFUSION BRANDS INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, INFUSION BRANDS is not utilizing all of its potentials. The new stock price disturbance, may contribute to mid-run losses for the stockholders.
Procter Gamble 
Procter Performance
15 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Procter Gamble are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Procter Gamble may actually be approaching a critical reversion point that can send shares even higher in February 2022.

Procter Price Channel

INFUSION BRANDS and Procter Gamble Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with INFUSION BRANDS and Procter Gamble

The main advantage of trading using opposite INFUSION BRANDS and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFUSION BRANDS 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.
The idea behind INFUSION BRANDS INTERNATIONAL and Procter Gamble 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.
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 CEO Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go