Correlation Between Procter Gamble and Pinnacle Food
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Pinnacle Food 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 Pinnacle Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Pinnacle Food Group, you can compare the effects of market volatilities on Procter Gamble and Pinnacle Food 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 Pinnacle Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Pinnacle Food.
Diversification Opportunities for Procter Gamble and Pinnacle Food
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Procter and Pinnacle is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Pinnacle Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle Food Group 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 Pinnacle Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Food Group has no effect on the direction of Procter Gamble i.e., Procter Gamble and Pinnacle Food go up and down completely randomly.
Pair Corralation between Procter Gamble and Pinnacle Food
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.09 times more return on investment than Pinnacle Food. However, Procter Gamble is 10.53 times less risky than Pinnacle Food. It trades about -0.02 of its potential returns per unit of risk. Pinnacle Food Group is currently generating about -0.02 per unit of risk. If you would invest 16,207 in Procter Gamble on June 12, 2025 and sell it today you would lose (261.00) from holding Procter Gamble or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Pinnacle Food Group
Performance |
| Timeline |
| Procter Gamble |
| Pinnacle Food Group |
Procter Gamble and Pinnacle Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Pinnacle Food
The main advantage of trading using opposite Procter Gamble and Pinnacle Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Pinnacle Food 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 Pinnacle Food will offset losses from the drop in Pinnacle Food's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| Pinnacle Food vs. Academy Sports Outdoors | Pinnacle Food vs. JD Sports Fashion | Pinnacle Food vs. ANTA Sports Products | Pinnacle Food vs. MGIC Investment Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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