Correlation Between Procter Gamble and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and XTRA Bitcoin 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 XTRA Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and XTRA Bitcoin, you can compare the effects of market volatilities on Procter Gamble and XTRA Bitcoin 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 XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and XTRA Bitcoin.
Diversification Opportunities for Procter Gamble and XTRA Bitcoin
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Procter and XTRA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin 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 XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of Procter Gamble i.e., Procter Gamble and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between Procter Gamble and XTRA Bitcoin
Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the XTRA Bitcoin. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 9.31 times less risky than XTRA Bitcoin. The stock trades about -0.01 of its potential returns per unit of risk. The XTRA Bitcoin is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.10 in XTRA Bitcoin on December 27, 2024 and sell it today you would lose (0.02) from holding XTRA Bitcoin or give up 20.0% 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. XTRA Bitcoin
Performance |
Timeline |
Procter Gamble |
XTRA Bitcoin |
Procter Gamble and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Procter Gamble and XTRA Bitcoin
The main advantage of trading using opposite Procter Gamble and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, XTRA Bitcoin 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 XTRA Bitcoin will offset losses from the drop in XTRA Bitcoin's long position.Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight | Procter Gamble vs. Kimberly Clark |
XTRA Bitcoin vs. Coin Citadel | XTRA Bitcoin vs. ICOA Inc | XTRA Bitcoin vs. NSAV Holding | XTRA Bitcoin vs. Lion Group Holding |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Money Managers Screen money managers from public funds and ETFs managed around the world |