Correlation Between 02361DAZ3 and Procter Gamble

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Can any of the company-specific risk be diversified away by investing in both 02361DAZ3 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 02361DAZ3 and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEE 59 01 DEC 52 and Procter Gamble, you can compare the effects of market volatilities on 02361DAZ3 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 02361DAZ3 with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of 02361DAZ3 and Procter Gamble.

Diversification Opportunities for 02361DAZ3 and Procter Gamble

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between 02361DAZ3 and Procter is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AEE 59 01 DEC 52 and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble and 02361DAZ3 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 AEE 59 01 DEC 52 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 02361DAZ3 i.e., 02361DAZ3 and Procter Gamble go up and down completely randomly.

Pair Corralation between 02361DAZ3 and Procter Gamble

Assuming the 90 days trading horizon AEE 59 01 DEC 52 is expected to generate 0.84 times more return on investment than Procter Gamble. However, AEE 59 01 DEC 52 is 1.2 times less risky than Procter Gamble. It trades about 0.02 of its potential returns per unit of risk. Procter Gamble is currently generating about -0.15 per unit of risk. If you would invest  10,679  in AEE 59 01 DEC 52 on September 12, 2025 and sell it today you would earn a total of  72.00  from holding AEE 59 01 DEC 52 or generate 0.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy60.94%
ValuesDaily Returns

AEE 59 01 DEC 52  vs.  Procter Gamble

 Performance 
       Timeline  
AEE 59 01 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AEE 59 01 DEC 52 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 02361DAZ3 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
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 unfluctuating 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.

02361DAZ3 and Procter Gamble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 02361DAZ3 and Procter Gamble

The main advantage of trading using opposite 02361DAZ3 and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 02361DAZ3 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.
The idea behind AEE 59 01 DEC 52 and Procter Gamble 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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