Correlation Between Procter Gamble and IPath Series

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

By analyzing existing cross correlation between Procter Gamble and iPath Series B, you can compare the effects of market volatilities on Procter Gamble and IPath Series 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 IPath Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and IPath Series.

Diversification Opportunities for Procter Gamble and IPath Series

-0.55

Correlation Coefficient

Procter Gamble  IPath Series

Excellent diversification

The 3 months correlation between Procter and IPath is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and iPath Series B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPath Series B 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 IPath Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPath Series B has no effect on the direction of Procter Gamble i.e., Procter Gamble and IPath Series go up and down completely randomly.

Pair Corralation between Procter Gamble and IPath Series

Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the IPath Series. In addition to that, Procter Gamble is 1.02 times more volatile than iPath Series B. It trades about -0.11 of its total potential returns per unit of risk. iPath Series B is currently generating about 0.14 per unit of volatility. If you would invest  3,119  in iPath Series B on October 7, 2025 and sell it today you would earn a total of  284.00  from holding iPath Series B or generate 9.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Procter Gamble  vs.  iPath Series B

Procter Gamble

Risk-Adjusted Performance

Weakest

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.

iPath Series B

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iPath Series B are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, IPath Series may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Procter Gamble and IPath Series

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

The idea behind Procter Gamble and iPath Series B 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.