Correlation Between Procter Gamble and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Sprott Physical 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 Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Sprott Physical Platinum, you can compare the effects of market volatilities on Procter Gamble and Sprott Physical 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 Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Sprott Physical.
Diversification Opportunities for Procter Gamble and Sprott Physical
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and Sprott is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Sprott Physical Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Platinum 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 Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Platinum has no effect on the direction of Procter Gamble i.e., Procter Gamble and Sprott Physical go up and down completely randomly.
Pair Corralation between Procter Gamble and Sprott Physical
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the Sprott Physical. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 2.18 times less risky than Sprott Physical. The stock trades about -0.08 of its potential returns per unit of risk. The Sprott Physical Platinum is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,041 in Sprott Physical Platinum on June 4, 2025 and sell it today you would earn a total of 172.00 from holding Sprott Physical Platinum or generate 16.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Sprott Physical Platinum
Performance |
| Timeline |
| Procter Gamble |
| Sprott Physical Platinum |
Procter Gamble and Sprott Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Sprott Physical
The main advantage of trading using opposite Procter Gamble and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Sprott Physical 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 Sprott Physical will offset losses from the drop in Sprott Physical's long position.| Procter Gamble vs. Xponential Fitness | Procter Gamble vs. TIM Participacoes SA | Procter Gamble vs. Alibaba Group Holding | Procter Gamble vs. Planet Fitness |
| Sprott Physical vs. Sprott Physical Gold | Sprott Physical vs. Sprott Physical Silver | Sprott Physical vs. Sprott Inc | Sprott Physical vs. BlackRock ESG Capital |
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 Positions Ratings module to 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.
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