Correlation Between Procter Gamble and IF Bancorp
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and IF Bancorp 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 IF Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and IF Bancorp, you can compare the effects of market volatilities on Procter Gamble and IF Bancorp 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 IF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and IF Bancorp.
Diversification Opportunities for Procter Gamble and IF Bancorp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and IROQ is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and IF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IF Bancorp 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 IF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IF Bancorp has no effect on the direction of Procter Gamble i.e., Procter Gamble and IF Bancorp go up and down completely randomly.
Pair Corralation between Procter Gamble and IF Bancorp
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the IF Bancorp. In addition to that, Procter Gamble is 1.08 times more volatile than IF Bancorp. It trades about -0.03 of its total potential returns per unit of risk. IF Bancorp is currently generating about 0.05 per unit of volatility. If you would invest 2,481 in IF Bancorp on July 26, 2025 and sell it today you would earn a total of 49.00 from holding IF Bancorp or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Procter Gamble vs. IF Bancorp
Performance |
| Timeline |
| Procter Gamble |
| IF Bancorp |
Procter Gamble and IF Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and IF Bancorp
The main advantage of trading using opposite Procter Gamble and IF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, IF Bancorp 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 IF Bancorp will offset losses from the drop in IF Bancorp's long position.| Procter Gamble vs. The Coca Cola | Procter Gamble vs. iShares Core SP | Procter Gamble vs. iShares Core SP | Procter Gamble vs. Gold Fields Ltd |
| IF Bancorp vs. Fifth District Bancorp, | IF Bancorp vs. Bank of the | IF Bancorp vs. First Bancshares | IF Bancorp vs. United Bancorp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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