Correlation Between Procter Gamble and Retractable Technologies
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Retractable Technologies 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 Retractable Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Retractable Technologies, you can compare the effects of market volatilities on Procter Gamble and Retractable Technologies 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 Retractable Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Retractable Technologies.
Diversification Opportunities for Procter Gamble and Retractable Technologies
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Retractable is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Retractable Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retractable Technologies 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 Retractable Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retractable Technologies has no effect on the direction of Procter Gamble i.e., Procter Gamble and Retractable Technologies go up and down completely randomly.
Pair Corralation between Procter Gamble and Retractable Technologies
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.43 times more return on investment than Retractable Technologies. However, Procter Gamble is 2.32 times less risky than Retractable Technologies. It trades about -0.06 of its potential returns per unit of risk. Retractable Technologies is currently generating about -0.1 per unit of risk. If you would invest 15,037 in Procter Gamble on September 1, 2025 and sell it today you would lose (221.00) from holding Procter Gamble or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Retractable Technologies
Performance |
| Timeline |
| Procter Gamble |
| Retractable Technologies |
Procter Gamble and Retractable Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Retractable Technologies
The main advantage of trading using opposite Procter Gamble and Retractable Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Retractable Technologies 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 Retractable Technologies will offset losses from the drop in Retractable Technologies' long position.| Procter Gamble vs. Kestra Medical Technologies, | Procter Gamble vs. Drugs Made In | Procter Gamble vs. Journey Medical Corp | Procter Gamble vs. CVR Medical Corp |
| Retractable Technologies vs. Nascent Wine | Retractable Technologies vs. GOME Retail Holdings | Retractable Technologies vs. H2O Retailing | Retractable Technologies vs. China Tontine Wines |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |