Correlation Between Lamar Advertising and PROCTER

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Lamar Advertising and PROCTER 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 Lamar Advertising and PROCTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamar Advertising and PROCTER GAMBLE 555, you can compare the effects of market volatilities on Lamar Advertising and PROCTER 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 Lamar Advertising with a short position of PROCTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and PROCTER.

Diversification Opportunities for Lamar Advertising and PROCTER

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between Lamar and PROCTER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising and PROCTER GAMBLE 555 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE 555 and Lamar Advertising 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 Lamar Advertising are associated (or correlated) with PROCTER. 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 555 has no effect on the direction of Lamar Advertising i.e., Lamar Advertising and PROCTER go up and down completely randomly.

Pair Corralation between Lamar Advertising and PROCTER

Given the investment horizon of 90 days Lamar Advertising is expected to generate 2.07 times more return on investment than PROCTER. However, Lamar Advertising is 2.07 times more volatile than PROCTER GAMBLE 555. It trades about 0.06 of its potential returns per unit of risk. PROCTER GAMBLE 555 is currently generating about -0.1 per unit of risk. If you would invest  12,643  in Lamar Advertising on September 4, 2025 and sell it today you would earn a total of  580.00  from holding Lamar Advertising or generate 4.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy76.56%
ValuesDaily Returns

Lamar Advertising  vs.  PROCTER GAMBLE 555

 Performance 
       Timeline  
Lamar Advertising 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lamar Advertising are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable primary indicators, Lamar Advertising is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
PROCTER GAMBLE 555 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days PROCTER GAMBLE 555 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PROCTER is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lamar Advertising and PROCTER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lamar Advertising and PROCTER

The main advantage of trading using opposite Lamar Advertising and PROCTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising position performs unexpectedly, PROCTER 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 will offset losses from the drop in PROCTER's long position.
The idea behind Lamar Advertising and PROCTER GAMBLE 555 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 the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Commodity Directory
Find actively traded commodities issued by global exchanges
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios