Correlation Between PROCTER and Anterix

Can any of the company-specific risk be diversified away by investing in both PROCTER and Anterix 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 and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PROCTER GAMBLE CO and Anterix, you can compare the effects of market volatilities on PROCTER and Anterix 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 with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROCTER and Anterix.

Diversification Opportunities for PROCTER and Anterix

0.26

Correlation Coefficient

PROCTER  Anterix

Modest diversification

The 3 months correlation between PROCTER and Anterix is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PROCTER GAMBLE CO and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and PROCTER 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 CO are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of PROCTER i.e., PROCTER and Anterix go up and down completely randomly.

Pair Corralation between PROCTER and Anterix

Assuming the 90 days trading horizon PROCTER GAMBLE CO is expected to under-perform the Anterix. But the bond apears to be less risky and, when comparing its historical volatility, PROCTER GAMBLE CO is 5.76 times less risky than Anterix. The bond trades about -0.01 of its potential returns per unit of risk. The Anterix is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  3,598  in Anterix on September 4, 2024 and sell it today you would lose (200.00) from holding Anterix or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.79%
Values	Daily Returns

PROCTER GAMBLE CO  vs.  Anterix

PROCTER GAMBLE CO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PROCTER GAMBLE CO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PROCTER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Anterix is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PROCTER and Anterix

The main advantage of trading using opposite PROCTER and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROCTER position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.

The idea behind PROCTER GAMBLE CO and Anterix 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.