Correlation Between Procter Gamble and Badger Infrastructure
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Badger Infrastructure 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 Badger Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Badger Infrastructure Solutions, you can compare the effects of market volatilities on Procter Gamble and Badger Infrastructure 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 Badger Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Badger Infrastructure.
Diversification Opportunities for Procter Gamble and Badger Infrastructure
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Procter and Badger is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Badger Infrastructure Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Badger Infrastructure 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 Badger Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Badger Infrastructure has no effect on the direction of Procter Gamble i.e., Procter Gamble and Badger Infrastructure go up and down completely randomly.
Pair Corralation between Procter Gamble and Badger Infrastructure
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the Badger Infrastructure. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 1.74 times less risky than Badger Infrastructure. The stock trades about -0.07 of its potential returns per unit of risk. The Badger Infrastructure Solutions is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,271 in Badger Infrastructure Solutions on June 4, 2025 and sell it today you would earn a total of 612.00 from holding Badger Infrastructure Solutions or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Procter Gamble vs. Badger Infrastructure Solution
Performance |
| Timeline |
| Procter Gamble |
| Badger Infrastructure |
Risk-Adjusted Performance
Solid
Weak | Strong |
Procter Gamble and Badger Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Badger Infrastructure
The main advantage of trading using opposite Procter Gamble and Badger Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Badger Infrastructure 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 Badger Infrastructure will offset losses from the drop in Badger Infrastructure's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| Badger Infrastructure vs. ACS Actividades de | Badger Infrastructure vs. ACS Actividades De | Badger Infrastructure vs. Acciona SA | Badger Infrastructure vs. Arcadis NV |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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