Correlation Between Procter Gamble and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Mayfair Gold 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 Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Mayfair Gold Corp, you can compare the effects of market volatilities on Procter Gamble and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Mayfair Gold.
Diversification Opportunities for Procter Gamble and Mayfair Gold
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and Mayfair is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Procter Gamble i.e., Procter Gamble and Mayfair Gold go up and down completely randomly.
Pair Corralation between Procter Gamble and Mayfair Gold
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the Mayfair Gold. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 4.09 times less risky than Mayfair Gold. The stock trades about -0.09 of its potential returns per unit of risk. The Mayfair Gold Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 119.00 in Mayfair Gold Corp on August 30, 2025 and sell it today you would earn a total of 39.00 from holding Mayfair Gold Corp or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Procter Gamble vs. Mayfair Gold Corp
Performance |
| Timeline |
| Procter Gamble |
| Mayfair Gold Corp |
Procter Gamble and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Mayfair Gold
The main advantage of trading using opposite Procter Gamble and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Procter Gamble vs. Eastman Chemical | Procter Gamble vs. Construction Partners | Procter Gamble vs. Neinor Homes SA | Procter Gamble vs. Agricultural Bank of |
| Mayfair Gold vs. Jones Soda Co | Mayfair Gold vs. Westrock Coffee | Mayfair Gold vs. Good Times Restaurants | Mayfair Gold vs. Luckin Coffee |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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