Correlation Between Standard Chartered and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both Standard Chartered and Procter Gamble 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 Standard Chartered and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Chartered PLC and Procter Gamble, you can compare the effects of market volatilities on Standard Chartered and Procter Gamble 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 Standard Chartered with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Chartered and Procter Gamble.
Diversification Opportunities for Standard Chartered and Procter Gamble
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Standard and Procter is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Standard Chartered PLC and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and Standard Chartered 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 Standard Chartered PLC are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble has no effect on the direction of Standard Chartered i.e., Standard Chartered and Procter Gamble go up and down completely randomly.
Pair Corralation between Standard Chartered and Procter Gamble
Assuming the 90 days horizon Standard Chartered PLC is expected to generate 1.88 times more return on investment than Procter Gamble. However, Standard Chartered is 1.88 times more volatile than Procter Gamble. It trades about 0.1 of its potential returns per unit of risk. Procter Gamble is currently generating about -0.19 per unit of risk. If you would invest 1,927 in Standard Chartered PLC on September 11, 2025 and sell it today you would earn a total of 242.00 from holding Standard Chartered PLC or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Chartered PLC vs. Procter Gamble
Performance |
| Timeline |
| Standard Chartered PLC |
| Procter Gamble |
Standard Chartered and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Chartered and Procter Gamble
The main advantage of trading using opposite Standard Chartered and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Chartered position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| Standard Chartered vs. National Bank of | Standard Chartered vs. Socit Gnrale Socit | Standard Chartered vs. KBC Group NV | Standard Chartered vs. BOC Hong Kong |
| Procter Gamble vs. Putnam Focused Large | Procter Gamble vs. Alcoa Corp | Procter Gamble vs. McDonalds | Procter Gamble vs. OGE Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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