Correlation Between Procter Gamble and Alphatec Holdings
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Alphatec Holdings 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 Procter Gamble and Alphatec Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Alphatec Holdings, you can compare the effects of market volatilities on Procter Gamble and Alphatec Holdings 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 Alphatec Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Alphatec Holdings.
Diversification Opportunities for Procter Gamble and Alphatec Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Procter and Alphatec is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings 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 Procter Gamble are associated (or correlated) with Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Procter Gamble i.e., Procter Gamble and Alphatec Holdings go up and down completely randomly.
Pair Corralation between Procter Gamble and Alphatec Holdings
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the Alphatec Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 3.05 times less risky than Alphatec Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The Alphatec Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Alphatec Holdings on April 14, 2025 and sell it today you would lose (7.00) from holding Alphatec Holdings or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Alphatec Holdings
Performance |
| Timeline |
| Procter Gamble |
| Alphatec Holdings |
Procter Gamble and Alphatec Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Alphatec Holdings
The main advantage of trading using opposite Procter Gamble and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Alphatec Holdings 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 Alphatec Holdings will offset losses from the drop in Alphatec Holdings' long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| Alphatec Holdings vs. Orthofix Medical | Alphatec Holdings vs. Si Bone | Alphatec Holdings vs. Avanos Medical | Alphatec Holdings vs. AtriCure |
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
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |