Correlation Between Procter Gamble and Harbor ETF

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Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Harbor ETF 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 Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Harbor ETF Trust, you can compare the effects of market volatilities on Procter Gamble and Harbor ETF 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 Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Harbor ETF.

Diversification Opportunities for Procter Gamble and Harbor ETF

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Procter and Harbor is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust 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 Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Procter Gamble i.e., Procter Gamble and Harbor ETF go up and down completely randomly.

Pair Corralation between Procter Gamble and Harbor ETF

Allowing for the 90-day total investment horizon Procter Gamble is expected to generate about the same return on investment as Harbor ETF Trust. But, Procter Gamble is 1.16 times less risky than Harbor ETF. It trades about -0.13 of its potential returns per unit of risk. Harbor ETF Trust is currently generating about -0.11 per unit of risk. If you would invest  2,229  in Harbor ETF Trust on September 6, 2025 and sell it today you would lose (182.00) from holding Harbor ETF Trust or give up 8.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

Procter Gamble  vs.  Harbor ETF Trust

 Performance 
       Timeline  
Procter Gamble 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Procter Gamble has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Harbor ETF Trust 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Harbor ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Etf's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

Procter Gamble and Harbor ETF Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Procter Gamble and Harbor ETF

The main advantage of trading using opposite Procter Gamble and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.
The idea behind Procter Gamble and Harbor ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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